What are the drawbacks of a Home Owners Association dropping liability insurance?

Without liability insurance, should there be any accident on the property, the association will be liable to pay for defending the claim, and potentially the claim for damages.

Often the trade-off between liability insurance premiums and the hourly rate for defense attorneys indicate the it's less expensive to pay the liability insurance premiums.


Your governing documents will help you define your requirement as an association insofar as carrying liability insurance is concerned. Usually, carrying it is mandatory.