Common Gound Liability Insurance

Started by EarlJ • 9 replies • 2022 views

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EarlJ (Missouri)
Posts: 3

Posted:

Having Homeowners Board just elected, after builder turned over HOA responsibilities to new elected Board, we have some common ground behind one row of homes. This ground is cow pasture type, not finished or currently used for anything. We are contemplating whether liablity insurance is necessary. This is a 25 home HOA with limited resources. Any experience with such a case?

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I am not nor do I play a lawyer.

It is wise for an association to carry liability insurance on all common/shared ground to protect the association against a suit. There are many starving, scumbag attorneys out there. You best protect against them.

JohnB26 (South Carolina)
Posts: 1,001

Posted:

get a quote from an agent

you may be worried about a $100 premium split 25 ways

RichardP13 (California)
Posts: 1,767

Posted:

The answer of whether you should carry liability insurance or any insurance for that matter will reside in your CCR's. It will tell you what and how much.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Earl,

Do you have any playgrounds?
Do you own the streets or sidewalks?
Do you contract for services (trash, snow removal, etc.)?

If you have any of those, you may want liability insurance.

Heck, even if you don't have any of them, you may want liability insurance.

For example: The FL Zimmerman issue. In that case, the attorney brought legal action against the Association. The Association wasn't at fault but decided it was cheaper to settle then fight the issue in court. The Associations liability insurance likely covered the costs.

See 2013 Orlando Sentinel article

NpS (Pennsylvania)
Posts: 4,216

Posted:

If property remains undeveloped, and you have no other common ground, you could avoid liability ... but if the area is attractive to young children, you will not avoid liability. Safest bet is to buy insurance.

Sikubali jukumu. Read all posts at your own risk.

BruceF1 (Connecticut)
Posts: 2,535

Posted:

Quote:

Posted By EarlJ on 08/04/2014 6:12 PM
Having Homeowners Board just elected, after builder turned over HOA responsibilities to new elected Board, we have some common ground behind one row of homes. This ground is cow pasture type, not finished or currently used for anything. We are contemplating whether liablity insurance is necessary. This is a 25 home HOA with limited resources. Any experience with such a case?

Read your CCRs. Your CCRs may require you to purchase liability insurance for all common property. If so, that answers your question.

Our Declaration (CCRs) requires our association to have liability insurance for all common property.

EarlJ (Missouri)
Posts: 3

Posted:

Thanks to all. This common grounds is not developed, and our CCR does not
state that we should have liability, but I'm convinced we need it. We do
contract for lawn, snow and trash. Missouri information is limited.

TimB4 (Tennessee)
Posts: 21,062

Posted:

Earl,

If you contract for snow removal, there can be liability if someone slips and falls in an area the Association was to clear. I would have it simply because of that.

KellyM3 (North Carolina)
Posts: 2,239

Posted:

Absolutely purchase liability insurance coverage for the cow pasture.

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