For members of a homeowners association (HOA), there are certain activities and home decorations that can be limited by the association itself. These are known as covenants, conditions, and restrictions, or CC&Rs.
While homeowners want to create a living situation that serves their interests, they have to abide by these rules for the sake of the community. But sometimes, even though the HOA has ruling power, the homeowner can turn around and bring a lawsuit against an HOA for stepping over the line.
Here’s why it’s important for HOAs to follow their rules and properly manage the community and its common areas.
CC&Rs for Homeowners’ Rights
If a homeowner in the community objects to any CC&R, which they can within their legal right if they feel it is unfair, they must gather enough support to approach the HOA board of directors and request a change. Homeowners can also become board members themselves to inspire change to the rules and restrictions in place at a later time.
An HOA, on the other hand, has legal recourse against homeowners who fail to pay fees or otherwise come in violation with the CC&R.
Rules and Regulations of an HOA
An HOA is the governing body for a planned unit development where all owners automatically become members of the homeowners association. Whatever properties are purchased are filtered into a contract to pay a fee and property members abide by all the rules written out by the HOA.
The CC&Rs can put restrictions on such things as how many cars can be parked out front or whether or not a certain pet or pet size is allowed in the community. Also, things like parties, noises, satellite TV installations, and flags can be included in CC&Rs. Homeowners, or members of the HOA, in return get services such as landscaping, snow removal, access to recreation areas, and repairs.
Lawsuits and Legal Actions
There are a number of situations in which a homeowner in an HOA community may sue an HOA. No matter the situation, having HOA insurance coverage, such as Directors & Officers insurance, is crucial for HOAs to protect their members and leaders in the event of a costly legal issue.
A breach of fiduciary duty relates to the failure of an HOA to manage the association’s major issues in a reasonable way. Negligent care and maintenance of the common areas around the community can be grounds for a suit for damages if a resident is injured because the HOA filed to correct an obstacle or problem in the common area(s).
Also, homeowners can sue if the HOA has come in violation with its own rules. Failure of the HOA to uphold the regulations can be considered a breach of contract. And other disputes by homeowners against their HOA’s may include neglected landscaping and selective enforcement of rules against certain members.
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 (877) 807-8708 to speak with one of our representatives.