Homeowner or HOA liability?

Started by KevinK7 • 9 replies • 1208 views

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KevinK7 (Florida)
Posts: 1,343

Posted:

I have a question. If you own a property, a separated home on its own lot, and the Homeowners Association hires someone to work on the exterior of your home, with or without notice, who would be held liable if something were to go wrong, and either a member of the HOA or the person performing the work gets injured on your property?

Would your homeowners insurance cover it?
Would the HOA's insurance cover it?

RogerB (Colorado)
Posts: 5,067

Posted:

Kevin, I suggest you ask that question to your insurance agent and if necessary the HOA's insurance agent.

JohnK3 (Pennsylvania)
Posts: 967

Posted:

I agre with Roger, though would speculate both policies might be in play. Trickier Qs are:

1. Which is primary, and;
2. At what level would the secondary kick in?

KevinK7 (Florida)
Posts: 1,343

Posted:

This was just one of those things that was running through my head. The only other questions I had just thought of were what if I had a "No Trespassing" sign and if I am not a member, could they still enter my property to make changes.

I was reading the proposed amended covenants for my neighborhood and was thinking of the wording as well as any possible situation... the covenants state the following:

"The Association may also provide exterior maintenance upon any Dwelling or Lot which, in the Association’s opinion, requires such maintenance because said Dwelling or Lot is being maintained in a manner inconsistent with the Community -Wide Standard of the Properties. The Association shall notify the Owner in writing, specifying the nature of the condition to be corrected, and if the Owner has not corrected the condition within fifteen (15) days after date of said Notice, the Association (after approval of a majority of the Board) may correct such condition. Said maintenance shall include but not be limited to painting, repairs, replacement and maintenance of roofs, gutters, downspouts, exterior building surfaces, trees, shrubs, grass, walks and other exterior improvements. For the purpose of performing the exterior maintenance authorized by this Article, the Association, through its duly authorized agents or employees, shall have the right, after reasonable notice to the Owner, to enter upon any Lot located in Sand Lake Hills which is subject to this Declaration at reasonable hours on any day; provided however, the Association shall have the right of entry without notice if necessary to correct an emergency situation. The cost of such maintenance shall be assessed against the Lot upon which such maintenance is performed and shall be collected as an Assessment against the Lot."

KevinK7 (Florida)
Posts: 1,343

Posted:

This is something I will definitely address with my agent! Just thought it would be interesting to see some opinions.

GeorgerwilliamsW (Indiana)
Posts: 975

Posted:

Don't expect your insurance agent to give you the correct answer. John has the best answer.

In short, the entity with the deepest pockets will be held liable. It is likely that your personal/home insurance carrier would seek to settle out of court to avoid the litigation. The Association will likely have higher insurance coverage and, thus, would be the target for the suit. Were I the plaintiff's attorney I would seek a jury trial and portray the association as reckless.

SusanW1 (Michigan)
Posts: 5,202

Posted:

Municipalities around here do this all the time. If you don't cut your weeds, they can come in and cut them and bill you - and if you don't pay, they take you to court.

The question in the court would be if the association does, in deed, have the authority to do what is claims it can do.

Any company hired by the HOA must have worker's comp. and that would take care of any injury no matter WHERE the accident took place.

MicheleD (Kentucky)
Posts: 4,491

Posted:

Our documents allow for us to go on to properties to remedy violations.

However.

We never, ever do it without a court order.

We go get an injunction, and then we get the court order, based on our CC&Rs among other things.

At that point, we have better protection against a lawsuit (not total protection, but better).

KirkW1 (Texas)
Posts: 1,665

Posted:

In general when you hire someone to do a job, you incur a liability. If the HOA hires someone, they should ensure that the contractor carries worker's comp insurance. I would think that they would also incur liability for any damage done to the home while maintaining it.

In short, while this works for cities, I would be very slow to use it as an HOA. I won't say never, but only in the extreme cases. Perhaps when a bank fails to maintain property since your chances of a suit are so much lower.

KevinK7 (Florida)
Posts: 1,343

Posted:

I would assume that the HOA would hire someone with Worker's Comp, but I would be worried that if one of the Board members or Committee members were to do come onto the property and have a problem... especially if it were an emergency situation.

I am unsure of what additional insurances my association has other than D&O insurance, since there is no common property.

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