Now that there has been a few changes on the board, maybe it's time to re-visit this issue.

If someone gets hurt / killed or if property is damaged from rocks falling from the cliffs along 1450 South, will the HOA's General Liability policy respond with defense and liability coverage?

I have presented this question to the board on numerous occasions, and honestly I don't think they even understand my concern. When I hear, "our agent said it's covered", or "the city said we're not liable", or when our attorney says, "we wouldn't be liable", I get nervous - very nervous. No one knows who would be liable until the conclusion of a trial.

Please note: I have never said our policy would not respond. I have said I'm not sure it would. Why? Because the policy is "silent" on this issue. It is not specifically highlighted in the insuring agreement, nor is it listed in the exclusions. This said, there are, in my opinion, a couple troubling parts of the policy that might limit, or exclude coverage.

What would a professional risk manager do at this point?

1. The best thing to do NOW is get confirmation from the insurance company, not the agent, in writing that they would respond to a claim - not just defense, but liability (damages for bodily injury & property damage).

2. Obtain written confirmation from our attorney stating his opinion regarding our liability. At the same time, get a certificate of insurance from him, naming our association as additional insured, of his Errors & Omissions insurance - (this includes name of insurance company and limits of liability).

3. Get written confirmation from the City of St. George stating their liability, and stating if they would defend us in the event of a claim.

It's that simple. Without it, we simply do not know if there is coverage or not. Collecting people's verbal opinions is meaningless.

I know that some board members (some current, some past), felt that they knew more about insurance that I do. Some felt attacked when I asked the question, and it was obvious to me that they felt that they had to know more, and accepting help was somehow admitting defeat. You all have seen these type of people, but it's just too important to not get this right - before a claim.

Some also believe their "loss assessment" coverage included in their Homeowner's policy would protect them. This is not the case - don't rely on false statements. If a claim were to happen, and the association's policy did not respond, the claim does not just "go away". There is a good chance that we, as homeowners, would still be responsible for the claim via an assessment. Personally, I would like to avoid this possibility.

You cannot rely on your Loss Assessment Coverage on your Homeowner's policy to pay for Assessment claims due to the HOA not purchasing the correct coverage for this exposure.

There are many variables, but likely the coverage that would be required is earthquake, earth movement, or landslide.

IF YOU DON'T HAVE THIS COVERAGE ON YOUR HOMEOWNER'S POLICY, LOSS ASSESSMENT COVERAGE WILL LIKELY NOT RESPOND TO A CLAIM.

I have been in HOA meetings when board member(s) told homeowners that if the HOA's policy did not respond to a rock fall claim that the HOA would assess all homeowners their share, and "not to worry" because "your homeowner's policy will pay the assessment". This is not true. This might be a good time to have this discussion with your agent.