The holiday season brings more than just decorations and cheer to community associations. It also brings higher liability risks for homeowners associations (HOAs) hosting festive events, installing lighting displays, or managing icy walkways. When an incident occurs in a shared space, the HOA could be held responsible — even if a resident or committee organized the event.
As claims escalate during the winter months, HOA umbrella insurance can provide critical protection beyond the limits of a standard policy. So, what holiday-related risks does umbrella insurance cover for HOAs?
What Holiday Season Risks Put HOAs in the Hot Seat?
Holiday activities create numerous risk scenarios for HOAs, especially those responsible for maintaining shared spaces. Common seasonal hazards include:
- Slip-and-fall accidents on snow or ice
- Fire hazards from HOA-installed lights, extension cords, or decorated trees
- Injuries or property damage during community parties or seasonal festivals
- Disputes over excessive or improperly installed holiday decorations, especially when association rules are vague or unenforced
HOAs are generally within their rights to regulate holiday decorations. However, vague rules or inconsistent enforcement can lead to disputes, safety concerns, or liability exposures. Clear guidelines around installation timing, placement, lighting, and size can help minimize confusion while supporting both safety and community harmony.
How Umbrella Insurance Extends HOA Liability Protection
Umbrella insurance, also known as excess liability insurance, activates when the HOA’s primary coverage limits are exceeded. It provides an additional layer of financial protection, often covering:
- Legal defense costs
- Settlements or jury awards above general liability limits
- Additional protections for board members, volunteers, and vendors
For example, if a guest is injured during a holiday gathering and sues the HOA for $2 million, but the general liability policy only covers $1 million, an umbrella policy can step in to cover the excess.
Kevin Davis Insurance Services offers excess liability solutions designed specifically for community associations, with limit options tailored to each HOA’s size and exposure.
Are There Gaps in Standard HOA Coverage During the Holidays?
Yes, and those gaps tend to widen during the holidays. Many general liability policies exclude:
- Alcohol-related incidents at HOA events
- Injuries caused by volunteers or temporary workers
- Claims that involve shared vendor or contractor liability
Umbrella policies are critical for associations managing seasonal risks. They can help fill these exclusions, providing peace of mind during this eventful time of year.
For proactive planning, our winter risk mitigation guide outlines how HOAs can reduce liability during the colder months.
Protect Your HOA Clients Over the Holidays
HOA umbrella insurance plays a vital role in managing risk during the holidays and throughout the year. Insurance agents working with community associations should encourage their clients to evaluate their current limits and potential exposures now — before a claim occurs.
FAQ: Holiday Liability and HOA Umbrella Insurance
What’s the difference between umbrella and general liability insurance for HOAs?
General liability offers initial protection for common risks. Umbrella insurance provides additional coverage when those policy limits are exhausted.
Does umbrella insurance cover HOA holiday parties?
If the HOA is legally liable for injuries or damages during an event and the claim exceeds the general liability limit, the umbrella policy can help cover the difference, provided the event is not excluded.
Does umbrella insurance cover all types of holiday-related claims?
Umbrella insurance provides excess coverage over primary policies, but it doesn’t override exclusions in the underlying coverage. That means specific incidents — like those involving unauthorized activities or uncovered vendors — may still fall outside the scope of protection. Agents should help HOA clients understand what is and isn’t covered based on their full insurance portfolio.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (855)-790-7393 to speak with one of our representatives.