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22 Jan Why a Portion of Homeowners Association Fees Should Go Toward General Liability Coverage
Homeowners associations face a lot of criticism even when things go well: the fees are too high, the benefits are too little, and someone doesn’t like the holiday decorations. But having a backup plan when things go wrong can help. Go through your homeowners association’s insurance policy before the next meeting to ensure you have the right general liability insurance in place for your area’s level of risk, especially if you have condos.
What are the risks general liability insurance can help cover?
- Injuries caused in common areas maintained by your association: Sometimes injuries happen, especially if your neighborhood has a pool or park under your domain. If there’s a slipping hazard that your association hasn’t removed yet or a broken up sidewalk and someone gets injured, the homeowners association could be faced with a suit for the medical costs. General business liability coverage can not only help pay the settlement but can help pay all the associated legal fees.
- If an individual homeowners’ property is damaged by communal maintenance: Part of the HOA fees are devoted to keeping communal nature areas in good repair, and that can mean everything from shoveling snow to trimming down trees. If any of the neighborhood maintenance, such as cutting down trees or watering the turf, damages someone’s property, you can use liability insurance to answer the claim, settle with the homeowner, or push the claim to the responsible third party.
Regularly checking your insurance limits and premiums can not only help you keep homeowners association fees low, but it can help protect the organization. Go to Evolution Insurance Brokers here to get a quote or get started.