Are HOAs in VA required/mandated to carry liability insurance? If yes, why and what is the insurance required to “cover”? I serve as President of a small (33 property) HOA in Poquoson VA. Our original bylaws and covenants (2003) reference that liability insurance was the responsibility of the builder which then transferred to the HOA a couple of years later. Our community has no HOA-owned land or buildings…100% of the land is owned by individual property owners. There are no sidewalks, but the streets are curbed. However, There is a “welcome sign” at the entrance of the community that the City mandated we erect when the community was built. It rests on private property. Also, the HOA is responsible to maintain several flood ditches (considered easements on provide property) that run along several properties to ensure storm water can drain in to two retention ponds.
Virginia law does not itself require liability insurance for HOAs. However, the Virginia Condominium Act defers to the condo, allowing the condominium instruments to require insurance. The Virginia Property Owners’ Association Act, on the other hand, requires a blanket fidelity bond or employee dishonesty insurance policy for HOAs that collect assessments for common expenses. That being said, it is still a good idea to consult a lawyer and an insurance agent to understand your community’s liability insurance needs.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.