HOA / COA "association insurance"

Property insurance protects buildings. General liability protects people.  And when someone is seriously injured or killed on HOA property, lawsuits often involve:

• The HOA itself
   
• Individual board members
   
• The property manager
   
• Sometimes even homeowners
   

These cases can easily reach seven or eight figures, especially in high-net-worth communities.

These are the scenarios that produce the biggest claims and verdicts:

• Uneven sidewalks
   
• Poor lighting
   
• Broken steps or railings
   
• Wet pool decks
   
• Ice / snow issues (where applicable)
   

A serious fall with head trauma can become a multi-million-dollar claim.

• Drownings
   
• Near-drownings with lifelong disability
   
• Child injuries
   
• Lack of supervision
   
• Broken equipment
   

These are among the most severe liability claims HOAs face.

• Gate malfunctions
   
• Poor visibility
   
• Poor signage
   
• Speeding complaints ignored by board
   
• Pedestrian injuries
   

If the HOA controls the roadways, liability is real.

Especially relevant for Tahoe area communities.  Claims can arise from:

• Alleged failure to maintain defensible space
   
• Poor emergency access planning
   
• Blocked evacuation routes
   
• Gate failures during evacuation
   
• Claims that the HOA’s negligence worsened damage
   

Even if the HOA did nothing wrong, defense costs alone can be massive.

Often overlooked.

• If the HOA knew about a dangerous dog
   
• If the HOA failed to enforce rules
   
• If the HOA allowed off-leash violations
   

The HOA can still be named in the suit.

The most critical elements in General Liability for an HOA are:

Minimum boards should consider:

• $1M per occurrence
   
• $2M aggregate
  Better for high-value HOAs:
   
• $2M–$5M primary + excess liability layers
   

Especially when homes are $1M–$5M+ each, plaintiffs' attorneys will pursue larger claims.

You want:

• The carrier to defend the HOA from dollar one
   
• Legal costs outside the liability limits if possible
   

Defense alone can exceed $250,000 even in cases the HOA ultimately wins.

While this is technically Directors & Officers (D&O), it overlaps heavily. You want to ensure:

• Board members are protected individually
   
• Claims of negligence in decision-making are covered
   
• Failure-to-maintain allegations don’t leave board members exposed
   

Many board members wrongly assume they’re automatically protected.

Boards tend to worry about:

“What if the clubhouse burns down?”
 

But the bigger legal risk is often:

“What if someone is seriously injured or killed and their family sues for negligence?”
 

Property losses are finite. Bodily injury lawsuits are unpredictable and often emotionally driven.

“Property insurance protects our buildings. General liability protects us from lawsuits when people get hurt. The most important exposure is severe injury or death in common areas, because that’s where the largest lawsuits come from.”