The holiday season is upon us, and that means an increase in the number of guests visiting residents in property associations whether for it’s for parties or overnight stays.
Most property associations share common best practices to protect residents and guests year round, but they become more important when the number of visitors is expected to increase. These practices include fences, gates, fire and burglar alarms, and battery replacement programs for smoke and carbon monoxide detectors. Associations generally have well lit common areas and parking lots, and keep trees, bushes and other foliage trimmed for the safety of residents and as protection from crime.
However, a best practice is not always so simple. Any of these actions can create additional liability for community associations. Associations need to take the time to think through where a best practice can lead and plan accordingly. Consider these three examples of potential general liability exposure in habitational risk stemming from some common best practices.
|1. Perimeter fences
Fences are often the first line of defense against break-ins. They’re also an opportunity for children to climb and injure themselves, which can leave the association at a potential liability risk for any injury the child may sustain.
This knowledge can also apply to a swimming pool, internal fences and gates.
Additionally, a locked and monitored perimeter fence can give homeowners and renters a false sense of security. A good fence can lead to poor individual practices, for instance, leaving a unit door unlocked.
|2. Smoke alarms
At holiday time, people spend more time on meal preparation and entertaining. Some residents take the batteries out of smoke detectors during cooking and then forget to put them back. Having hard-wired devices removes this risk.
|3. Speed bumps
Most drivers slow down when approaching a speed bump — as long as the driver knows where the bumps are located. A best practice is to have warning signs. But this still doesn’t keep some drivers from speeding over the bump, damaging their car and hurting themselves or their passengers in the process.
Related: 6 things you need to know about insuring a condo — before buying one
|Conduct an inspection
For property associations there are three true best practices:
- Speak with your agent to make sure the policy coverage is truly comprehensive.
- Ask questions throughout an inspection.
- Communicate with association members.
“During an inspection, we’re able to identify potential liability risks that most organizations haven’t considered,” said Bart Sturgis, president of Preferred Reports. “Because there are more claims due to layout and maintenance of the facilities and amenities, an inspector’s experience matters. A cookie-cutter approach to inspection won’t help.”
Neither will keeping information from association members. While it doesn’t absolve an association of liability, continual communication is key to keeping the incident level low. Inform residents of safety precautions and rules – often. Provide tips and reminders on a monthly basis.
Finally, consider additional precautions, such as signs to remind association members of best practices, and cameras and motion lights to deter unwanted visitors from mischievous teens to criminals.
In the end, collaboration is key to keeping everyone as safe as possible and liability to a minimum. Working as a team – agent, inspector and association members – is the best practice. That is simple!
Carol Teasley is the Underwriting Manager in V3 Insurance Partners’ Property & Liability Practice, with a focus on community association policies. She can be reached at [email protected].
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
