Keep in mind that your HOA board is weaponized with the HOA’s attorney and it is not uncommon that they pursue homeowners due to their egos and personal vendettas. Most boards don’t even understand HOA financials well enough to understand that legal expenses have adverse outcomes on operations budgets. HOA boards are not unlike the government and don’t blink twice at spending money that is not theirs. We’ve all seen the “lawfair” on the various news channels where our politicians are using the judicial system to seek political justice. For HOAs, they have an attorney on retainer at their disposal.
I have been sued for libel and slander even though it was demurred at a court hearing where the judge said it did not meet the legal threshold of such. In short, the process was expensive and umbrella insurance would have covered my legal expenses. Before you start speaking out against your bad board or management, I recommend that you call your insurance agent and get an “umbrella” policy.
What is umbrella insurance?
Umbrella insurance, also known as extra or “umbrella” insurance coverage, is a type of insurance that provides additional liability coverage beyond what’s already included in other policies. It can cover situations where a claim exceeds the limits of other policies, or in some cases, situations that other policies don’t cover at all. Umbrella insurance can protect your assets by paying for large medical and repair bills, as well as legal defense costs. It can also cover you and your family against a wide range of losses, including:
- Other: Uninsured or underinsured auto claims, attorney fees, worldwide coverage, and wages lost due to a court appearance
- Bodily injury: Medical costs, loss of income, and funeral expenses
- Personal injury: False arrest, invasion of privacy, libel, slander, humiliation, or defamation
- Property damage: Physical destruction of someone else’s property
Call your insurance agent
You might have this type of coverage already included in your homeowners or renters policy. Keep in mind that umbrella coverage does not protect you if it is something criminal. I suggest that you call your insurance agent and see if you have any amount of personal liability coverage included in your policy. Even if it is included in your policy, ask how much it would cost to purchase additional coverage. USAA’s website quotes “as low as $1.25 per day for $1 million worth of coverage.”
People are discovering the value of an umbrella policy. On July 31, 2024, the Wall Street Journal wrote about how claims and premiums have gone up. However, it is still very affordable with most people being able to secure policies of $1 million for $30 a month.
I know of someone that is currently being sued by their HOA for libel and slander. This is real and your HOA will think twice against pursuing you if they know that you have the coverage and protection of a major insurance carrier. If you are considering posting on social media or communicating in any way with other homeowners and the public, get your umbrella coverage policy ASAP. It will only be effective for incidents from the date of coverage and going forward.
Disclaimer: This article is provided for information purposes only and does not constitute legal advice.
