Another insurance posting

What State are you in ?

I am questioning the property owners association insurance in the state of Georgia. I do have my regular homeowner's insurance to protect me. But this is a small fly-in community with a private landing strip and a pond in the common area. The way I have understood things in the past having been an officer for only 1 year in Florida, that the association should have insurance for its officers as well as association insurance for the common areas. My husband and I have questioned this on more than one occasion and have been told it is not necessary. I just want to make sure I am protected and if there is additional insurance I should buy, then I would like to be advised.

TITLE 14. CORPORATIONS, PARTNERSHIPS, AND ASSOCIATIONS
CHAPTER 3. NONPROFIT CORPORATIONS
ARTICLE 8. DIRECTORS AND OFFICERS
PART 5. INDEMNIFICATION

O.C.G.A. § 14-3-857 (2007)

§ 14-3-857. Insurance

A corporation may purchase and maintain insurance on behalf of an individual who is a director, officer, employee, or agent of the corporation or who, while a director, officer, employee, or agent of the corporation, serves at the corporation's request as a director, officer, partner, trustee, employee, or agent of another domestic or foreign business or nonprofit corporation, partnership, joint venture, trust, employee benefit plan, or other entity against liability asserted against or incurred by the individual in that capacity or arising from the individual's status as a director, officer, employee, or agent, whether or not the corporation would have power to indemnify or advance expenses to the individual against the same liability under this part.

HISTORY: Code 1981, § 14-3-857, enacted by Ga. L. 1991, p. 465, § 1; Ga. L. 1997, p. 1165, § 14.

It's called D&O insurance, and you could probably get an idea of the cost by calling HOAtalk sponsor IHG Insurance.

Consult with your agent, and do all that ia possible to protect yourself. Below is an extract from the case that caused CA to pass emergency legislation about liability insurance. Final judgement was $4 Million - guess who coughed up an additional $3Million.

Ruoff v. Harbor Creek Community Assn. (1992) 10 Cal.App.4th 1624 , 13 Cal.Rptr.2d 755
[No. G011799. Fourth Dist., Div. Three. Nov 18, 1992.]
RUSSELL RUOFF, Individually and as Conservator, etc., Plaintiff and Appellant, v. HARBOR CREEK COMMUNITY ASSOCIATION et al., Defendants and Respondents.
(Superior Court of Orange County, No. 593176, Jack K. Mandel, Judge.)
(Opinion by Sonenshine, J., with Moore, Acting P. J., and Wallin, J., concurring.)
COUNSEL
Dennis M. Mullen and Charles A. Gruber for Plaintiff and Appellant. [10 Cal.App.4th 1626]
Dicaro, Highman, D'Antony, Dillard, Fuller & Gregor, Henry P. Schrenker, Sheri Laughlin Bills, Cassidy, Warner, Brown, Combs & Thurber, Lloyd W. Felver, Stockdale, Peckham & Werner, Kelly A. Woolsey, Waters, McCluskey & Boehle and Joseph R. Saunders for Defendants and Respondents.
OPINION
SONENSHINE, J.
Martha Ruoff and Russell Ruoff, individually and as Martha's conservator, challenge summary judgments entered in favor of various defendants fn. 1 in a suit arising out of Martha's slip and fall on a stairway in the common area of the 152-unit Harbor Creek complex. Martha sustained catastrophic injuries. According to appellants, whose statement is uncontradicted by respondents, on August 9, 1988, Martha fell backwards, landing at the bottom of the stairs, her foot wedged in a gap between the side of the building and the edge of the stairs. Comatose and bleeding, she was taken to Mission Hospital and admitted to the intensive care unit (ICU) where she was treated for multiple skull fractures. Due to complications, she underwent partial amputation of her left thumb, index and middle fingers. A month after the accident, a percutaneous endoscopic gastrostomy (insertion of a feeding tube in the stomach) was performed. The following month, a lumbo-peritoneal shunt was inserted in her spine for draining fluids. Martha remained in a coma. A tracheotomy tube inserted at the time of the accident was not removed for two and one-half months. Released from Mission Hospital after 107 days in the ICU, Martha was transferred to the Rehabilitation Institute of Santa Barbara, where she underwent a course of treatment and therapy until, after eight months, the Ruoffs were no longer able to pay for the institutional care. Martha now lives at home, where her 72-year-old husband takes care of her. She is unable to bathe, dress or feed herself. She is incontinent in bladder and bowel. Her diagnosis and prognosis include "probable permanent memory loss, gait disturbance, incontinence and other severe neurological abnormalities." Her only communication is "babble." She will require 24-hour-a-day care for the remainder of her life. Her medical expenses to date exceed $750,000.

Diane, move back to FL. There are plenty of fly-ins and I very much doubt if, one of them does not have liability insurance. Forget D&O insurance, that is important but with the community you live in not even 1% as important as liability insurance.

Check your Declaration of CC&Rs for required insurance coverage. If an older association with no insurance requirements stated then check your state statutes. At a minimum every association needs D&O liability plus property insurance on the common areas. If your association's Board does not want to comply send them a registered letter with the stated requirements. Also, advise them if they do not comply they can be personally liable. That should light a fire under them