It’s common to hold holiday gatherings in the common spaces of condominiums and other communities. Whether the HOA hosts the party or the space is available to rent to tenants, there are always things that can go wrong.
Someone drinks too much and falls into the empty pool, an electrical fire is sparked by Christmas lights and burns a guest, a child slips on ice in the parking lot and breaks a leg, etc. Obviously, there are many problems that HOAs and condo boards could be found liable for. Thankfully, there’s insurance for all of these unforeseen situations. Here’s what you need to know.
Lowering Your Board’s Liability
In order to alleviate your board’s potential liability, there are a number of regulations that you can put into place, such as:
Making Tenants Sign a Contract – If they want to use the common space for a party, they need to sign a notarized contract with the board placing the liability for their guests’ actions and incidents on them, instead of the HOA. Just check with a lawyer before putting the contract into action, so you can ensure it holds up in court.
Limiting Parties – Putting regulations into place regarding the types of parties that can be held in the common space, as well as which parts of that space are available for gatherings, can help. For example, not allowing partygoers to use the pool can prevent accidents that you could be found liable for.
Not Allowing Alcohol – It’s common for alcohol consumption not to be allowed at parties like the ones held in condo common spaces. Not only will this prevent drunken shenanigans from occurring, but it also can prevent accidents that might lead to costly settlements.
Requiring a Security Guard – If your tenants want to throw a party, they have to hire their own security guard from a company recommended by your HOA board. This will keep the party under control, as well as provide another eyewitness should an accident occur.
Check Your Liability Insurance Policies
Your HOA or condo board should have liability insurance on top of your standard specialty policies. There are two types of liability insurance, and both can be very useful should something happen during a holiday party in a communal area. The first is general liability insurance. These policies can pay for things like legal fees, settlement amounts, and other related costs.
The problem with general liability insurance is that it has monetary limitations. If you’re worried that your policy may not have enough coverage for every possible circumstance, then you need an umbrella liability policy. This type of insurance may cover amounts that are beyond that of your general policy, within limits and for specific reasons, of course.
Have Questions? Contact Charlotte Insurance
Want to learn more about insurance for HOAs and condo associations? Contact Charlotte Insurance. Our agents can explore and explain all available options and put together the insurance coverage plan your condo or HOA needs.