6 Suggestions For Homeowners Associations To Mitigate Their Exposure to Potential Liability
A recent case reported in Virginia Lawyers Weekly highlights the significant financial risk to homeowners associations (“HOAs”) when sidewalk maintenance is neglected. In this case, a resident tripped on an uneven sidewalk—maintained by the HOA—and suffered severe injuries. The injuries required surgery and 10 months of treatment, resulting in $200,000 in medical expenses. The plaintiff also lost valuable time from their online retail business. Ultimately, the case was settled for $650,000 before a lawsuit was even filed.
This scenario serves as a reminder HOAs to evaluate their responsibilities under their governing documents. Here are several steps HOAs can take to reduce liability and protect their communities from similar claims:
1. Conduct Regular Inspections
HOAs should establish a schedule for inspecting sidewalks and other common areas. Look for hazards such as uneven pavement, cracks, and other trip-and-fall risks. Inspections should be documented, as records can serve as evidence of diligence in case of a claim.
2. Prioritize Repairs Promptly
When issues are identified, repair them as soon as possible. In the case mentioned, the sidewalk had a two-inch height discrepancy—a tripping hazard that could have been addressed through grinding, leveling, or slab replacement. Delaying repairs increases the risk of accidents and makes claims harder to defend.
3. Enhance Lighting
Poor visibility can exacerbate sidewalk hazards. Installing streetlights or sidewalk lights can help residents navigate safely at night and deter potential accidents. Lighting improvements are a relatively small investment compared to the cost of a personal injury claim.
4. Consider Risk Transfers
HOAs should review their insurance policies to ensure adequate coverage for premises liability. Additionally, HOAs may consider hiring third-party contractors for sidewalk maintenance and ensuring these contractors carry proper insurance.
5. Communicate with Residents
Encourage residents to report hazards promptly. Open communication creates a partnership between the HOA and the community to maintain safety.
6. Consult Legal Counsel
If your HOA is unsure about its responsibilities or how to implement these steps, consult an attorney experienced in HOA law. Proactive legal advice can help reduce risk and ensure compliance with applicable regulations.
Lessons from the Case
This $650,000 settlement underscores how expensive negligence can be. By implementing regular maintenance schedules, prioritizing safety improvements, and ensuring proper insurance coverage, HOAs can mitigate these risks. Taking proactive measures is not just about avoiding lawsuits; it’s about creating a safe and welcoming community for all residents.