Homeowners Associations Playing “Cop” and Experiencing More Claims from Residents

// June 7, 2018
Reading Time: 3 minutes

Over 63 million Americans reside in communities such as condominiums, homeowners associations, planned unit developments or cooperatives. In the past few years, associations began offering unique amenities, and more and more homeowners are flocking to these large associations due to the extensive list of amenities.

“Policing” the residents has become a necessity due to the increase in popularity of living in a gated community; these neighborhoods are essentially small towns. Due to the sheer size of these associations, boards of directors have started adopting distinctive sets of bylaws that govern the association in an effort to keep peace and monitor laws that municipalities cannot enforce. The most common crime committed by residents? Traffic violations.

Running stop signs, speeding and driving on the wrong side of the road occur frequently. Associations in Florida, for example, have now taken a stand and police themselves by use of surveillance cameras. According to a news story last year, a Florida resident ran a stop sign and was surprised to receive a fine from her association instead of a police authority.

What grounds does an association have for issuing a traffic violation? Florida law allows homeowners associations to fine tenants for breaking the law. Associations in Florida also have the authority to govern themselves since gated communities can be difficult for police officers to regularly patrol.

With the growing popularity of living in a gated community, it’s riskier than ever for an association to forego insurance. Residential associations are encountering claims more frequently and with a higher severity because the individuals residing in these communities are passionate about their homes and where they live. The claims tend to carry strong feelings and emotions for the places they call home.

Our Community Association Directors and Officers product is not only geared toward residential associations but also commercial offices/industrial, retail associations and property owners associations with mandatory membership. We offer the following coverages at limits from $1 million through $5 million:
• Coverage for monetary and non-monetary claims
• Defense outside the limits of liability
• Duty to defend with affirmative 100 percent allocation wording (paying all defense costs for covered and uncovered matters)
• Automatic coverage for property management company

As community associations continue to police these “small towns,” don’t let your local associations go without coverage. Getting an Instant Phone Quote has never been easier; all you need is the applicant name, address, type of association and the number of units in the association. Please contact your Professional Lines underwriter for more information or a quote, or get a web quote today >>


As always, thank you for your support and business.

Kim MullinsContact Kim Bennett-Mullins,
Vice President, Regional Team Leader | 888-523-5545 Ext. 2209

Tom LangstonWritten by Tom Langston
June 7, 2018