Insurance

I put one question on this site and rec'd an awesome answer almost immediately so I am hooked. Thanks so much.

Next problem. We were managed by what is turning out to be a very incompetent management company. Our funds are depleted and there are a ton of bills. We are told we need liability coverage not just D&O to cover security patrol and if someone falls. We have ZERO common property, two islands that have a little landscaping and signs between the entrances which would be no great loss if they were hit. Do we really need liability coverage?

Any help very appreciated. We have a long way to go to get up this hill.

Carmen

More importantly in my mind, what if your security patrol hurts someone who would be on the hook? Even if it's the security company you can bet the HOA will also be named in any lawsuit. This is something you need to discuss with the HOA's attorney and / or insurance agent.

Carmen,

You say you have "zero" property but then you say you maintain landscaping to 2 islands. Who owns the islands - are they city right-of-way areas? And who owns the property at the entrance where the signs are located? If the HOA owns nothing, why is there an HOA? Now that you have depleted funds, it may be a good time to check into why there even is an HOA! The deed restrictions that all property owners must abide by will remain with each property should the HOA dissolve. The only difference would be that each individual property owner would be resp. for enforcement instead of a BOD.