Older homeowners association (HOA) governing documents often haven’t caught up with newer flag and sign display laws. When a board keeps enforcing a rule that one of these laws has already overridden, it isn’t managing a routine complaint. It’s applying a policy the state legislature has voided, and a board decision like this is exactly the kind of wrongful act that HOA directors and officers (D&O) insurance is designed to address.
What Colorado’s HB21-1310 Requires
Colorado’s HB21-1310 took effect Sept. 7, 2021. It bars HOAs from prohibiting or regulating flags or signs based on subject matter, message, or content. Associations can still adopt reasonable, content-neutral rules on number, size, and placement, along with prohibitions on commercial messages (e.g., flags or signs advertising a business, product, or service). Content itself is off the table.
Before the law, Colorado associations could ban most signs and flags outright, with narrower exceptions for the American flag and certain service flags. HB21-1310 replaced that framework with a broader default: any flag, any sign, at any time, subject only to those content-neutral limits.
Governing documents drafted before 2021 that ban “non-American flags” or restrict political signs describe a rule that no longer holds. The Colorado Division of Real Estate’s notice on the law confirms both the scope and the effective date, and it flags a gap worth passing along to clients: The statute doesn’t define “reasonable.” Boards revising policy language need legal counsel involved before adopting new rules, not after a dispute tests them.
Why Other States’ Versions Are Different
Colorado’s statute is broad and applies year-round. Other states took a narrower or differently structured approach. Arizona’s A.R.S. § 33-1808 protects political sign display only within a defined window: 71 days before an election through 15 days after it. Outside that window, an Arizona association keeps more room to restrict content.
California’s Civil Code Section 4710 protects noncommercial signs, posters, flags, and banners year-round, with no election-season limitation. It caps size at 9 square feet for signs and posters and 15 square feet for flags and banners.
The variation among these three states explains why “flags are protected now” is the wrong starting assumption for an agent reviewing a client’s governing documents. The specific statute in the association’s own state determines which HOA rules are unenforceable. A rule that survives scrutiny in Arizona outside election season could still expose a Colorado or California board that assumes the same carve-outs apply everywhere.
Reviewing a client’s governing documents against their state’s specific statute, alongside their D&O program, is a conversation worth having at the next renewal.
Where D&O Insurance Fits
Enforcing a rule the legislature has already overridden is a board decision. A decision like that is the kind of wrongful act that D&O coverage addresses, whether the resulting claim alleges breach of fiduciary duty, breach of contract, or improper enforcement.
Boards can wrongly expect D&O insurance to function like general liability coverage. A real claim scenario corrects that assumption fast, often at the worst possible moment. A duty-to-defend feature, like the one offered by Kevin Davis Insurance Services, changes that outcome: The insurer provides legal defense against covered allegations of wrongful acts rather than reimbursing costs after the fact.
Confirming that a client’s HOA officer insurance program and their governing documents are both current with their state’s display statute requires a short conversation now. The alternative may cost considerably more after a claim.
Display Laws FAQ
Can an HOA still ban flags entirely?
No, not in states with display-protection statutes like Colorado, Arizona, or California. Associations can typically still regulate size, number, and placement, but a blanket content-based ban is no longer enforceable in those jurisdictions.
Does the same flag law apply in every state?
No, the rules vary by state. Colorado and California protect flags and signs year-round, Arizona only during a defined election window, and California adds specific size limits that Colorado doesn’t have.
What kind of claim results from enforcing an outdated flag rule?
A homeowner or board member can allege breach of fiduciary duty, breach of contract, or improper enforcement against the association, the kind of allegation D&O coverage is designed to defend.
About the Author
Kevin Davis is President of Kevin Davis Insurance Services, Inc. (KDIS) and managing general agent for Travelers Insurance — one of the largest specialty insurance writers for community associations in the United States, currently insuring more than 40,000 associations nationwide. With three decades in the insurance industry — 25 of them devoted exclusively to community associations — Davis brings rare depth of expertise to a highly specialized field. He founded KDIS in 2000 with a two-person team and has since built it into a firm of more than 65 employees, establishing the company as a trusted leader in its market. A nationally recognized authority on loss prevention, Davis writes and speaks regularly on the subject. He also serves as a faculty member for Community Associations Institute (CAI) training programs throughout the country.
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.