Bankrate Audio » Protect Your HOA From A Lawsuit
Editor's note: This is a transcript of the audio file.
Your homeowners association means well by offering a crime watch program. But a program like this could get your HOA sued.
There are ways you can protect your association and your own pocketbook. I'm Janet Stauble with your Bankrate.com Personal Finance Minute.
Lawsuits can drain the financial resources of associations and even require special assessments on residents to cover legal expenses.
Review the HOA's Neighborhood Watch program rules. A resident or committee shouldn't be the security contact. An HOA should rely on local law enforcement and not give the impression that they're providing security.
If your community has volunteer crime watch, there should be training from a police officer and written rules stating volunteers should only observe and report crime, not intervene.
For added security, HOAs can contract a professional security firm for liability protection.
Check the HOA's liability insurance coverage. Criminal activity is often excluded from commercial liability coverage. Ask your association if resident volunteers are covered under the liability policy.
Want to learn more? Log onto Bankrate.com. I'm Janet Stauble.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.
By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.