Indirect Insurance Question - would one's personal umbrella policy cover claims that spillover from a POA

Also, I will explore "Loss Assessment Coverage" with the agent. That might be more appropriate. Does anyone have experience with that type of insurance?

If this is a hypothetical question, why not just wait until your agent gets back? We don’t have access to your policy anyway to read it, so if you want more accurate information and not depend on guesses from the internet and sending your imagination into overdrive, be patient.

You know or should know this already, but loss assessment coverage helps pay for damages in a condo or HOA’s common areas or special assessments (which are usually assessed to pay for damages when there isn’t enough money in reserves, master insurance and possibly the operations fund to pay for it. So, if the association lost a lawsuit and was facing a huge judgement, a special assessment may be necessary to pay it.

This is optional coverage, so homeowners will need to talk to their individual agents about adding it – I purchased this a few years ago and have a $500 deductible. Personally, I think it’s a good idea to have this regardless of what the board does (or in spite of it) because most people don’t have several thousand or hundred thousand dollars lying around in case of situations like this.

In your case, I think your board is being incredibly short-sighted. Anyone who’s paid attention to HOA and condo master insurance lately knows premiums have skyrocketed for all sorts of reasons. Even if they take steps to reduce the association’s risk, there’s always the chance that a natural disaster can fly in and trump everything (that may be more likely than a lawsuit, especially in Texas – y’all have an issue with cold, cold winters, hurricanes and a state legislature and officials who are full of it).

If your board wants to play Russian roulette with the homeowners’ wallet, you and your neighbors need to get together and either compel them to make decisions in the best interest of the community or replace them with board members who will.

I agree with everyone. Wait for a reply from your agent. That said, my personal opinion (worth nothing) is an association raising dues, for whatever reason, is not a liability issue thus your personal liability insurance would not cover such.