Civil Liability of Homeowners' Associations
Owners of properties or residential complexes are liable for civil damages if they unfortunately cause harm to third parties as a result of the improper management of common areas. In this regard, it is the owners’ duty to ensure the proper functioning and maintenance of the building’s structural elements.
This liability means that damage could be caused to property belonging to the community or that personal injury—including death—could occur. With this in mind, it would be wise to purchase insurance, even though the law does not require it. And if there is no insurance, communities are not exempt from liability.
Understanding Civil Liability
As for civil liability, we have already mentioned that the laws of condominium do not require you to purchase a policy, with the exception of a few autonomous communities. Therefore, even if there is no insurance, the homeowners' association must be liable for any damages, whether they occur in common areas or private areas.
Damage may occur due to the partial or total deterioration of a property as a result of repairs not being carried out in a timely manner. In such cases, to determine whether the homeowners’ association is liable, it is sufficient to establish that the damage occurred and that it was caused by a failure to carry out repairs in a timely manner.
Damage can result from intentional acts or negligence; for example, water in common areas that could cause someone to slip and fall. Another example is the absence of signs indicating that repairs are being carried out. Therefore, civil liability hinges on key factors.
Origin
Determining the cause of the damage is essential, since if the damage is caused by private property, the responsibility lies with the individual resident and not with the community.
Water damage
Broken pipes or clogs in downspouts are the most common problems in apartment buildings. In these cases, it is necessary to purchase insurance that covers this type of repair. Some policies do not cover this, while those that do may require you to pay a deductible.
Claims
Liability insurance for homeowners' associations covers unforeseen events that occur on a property and result in damage to third parties. It covers the compensation owed if someone is harmed. In addition, most of these policies cover damage caused by lightning strikes, fires, explosions, damage due to abnormal electrical voltages, and even floods.
Insured amount
It is very important to keep this in mind because if an incident results in additional expenses, the insurance company will not cover them. It will be up to the community to cover these expenses, which, incidentally, are quite common in cases of fire.
Deadlines
Laws on civil liability establish statutes of limitations for claims for damages against a homeowners' association. That is why it is important to be on the lookout for any type of damage that occurs to the properties before the statute of limitations expires.
Reply
Keep in mind that, although it is common for a homeowners’ association to be sued, there are exceptions. For example, if the necessary maintenance of common areas has not been performed and this causes damage to residents, the property manager is liable.
Liability arises when the necessary maintenance work is not ordered or carried out. Therefore, it is crucial that the property manager(s) stay on top of this type of work to avoid serious problems.
You have to make sure
Given the above, it is advisable to purchase liability insurance that protects against events that could harm third parties or the community as a whole. Every effort must be made to provide all necessary services and prevent unforeseen circumstances.
Ideally, the community should be presented with a range of insurance options that suit their specific needs. This will ensure they have liability coverage in the event of an incident.
