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Subject: Cost of insurance for community park?
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ScottP11
(Texas)

Posts:5


04/02/2019 6:56 PM  
Anyone care to share how much their hoa is paying for insurance on their park and a very general description of it? I know, vague question... there are many factors that affect cost. I’m just trying to do some very rough cost estimates. This park would be 1 acre with a play area, pavilion and bike trail on hoa owned land. I have no idea if I should pencil in $10k, $50k or $100k and now Im just curious.

Thanks!
MelissaP1
(Alabama)

Posts:8599


04/02/2019 7:43 PM  
You just stepped in it. There are LOTS of variables to consider outside of insurance. Although the best resource would to discuss it with your insurance carrier. You may be surprised as it did not increase any for us when I asked. We already had a pool and clubhouse. That being said, there are other things to look at.

The type of playground equipment matters. Ours was a small HOA. Did not need much equipment. Found those Wood playground equipment companies interesting. However, reading the fine print, you find that their warranty does NOT cover for community use. There's a limit of like 6 kids and private use. Meaning you don't have a warranty if installed. Lowes/Home depot has playground equipment options. Again, watch for warranty, return policy, and installation. Who's going to put the equipment together and be responsible?

An option I checked into was purchasing used equipment from the Park and Recs department in our city/county. They sometimes get rid of it for newer equipment. It's cheaper and made for commercial use. You may even consult them on where they get the equipment.

Our HOA members voted down the idea of a park for the kids. They said the kids won't be using it long and elementary school nearby. Wasn't worth the noise, money, and risk for the few kids that we had. Considering we have a rotating door of residents. So you want to make sure other parents are on board for a playground BEFORE pursuing. May sound good but doesn't mean parents want it.

As for the pavilion or other buildings, insurance costs may be more liability than replacement. It may be cheaper to replace a 2K gazebo than to keep paying $25 a month for replacement. Considering there is a high deductible involved.

Get the votes and support first before proceeding too far. Those interested can be assigned different duties to make the project happen.

Former HOA President
LetA
(Nevada)

Posts:788


04/02/2019 9:28 PM  
Herre in Vegas an HOA got sued by a homeowner and the jury came back with an astronomical punitive and compensatory award to the victim all because the BOD thought they were too proud to pay to repair a community swing set that showed signs of wear and tear. Every homeowner is at-risk and can lose their home to satisfy the jury award if the plaintiff so choses to go after every homeowner.

I believe that common areas are use at your own risk but you can pay for that pervebial butt band-aid to CYA. This is not an insurance policy, My HOA just voted in February in response to the huge lawsuit across the valley to hire a contractor that is certified to inspect the community playground equipment, This company comes out once per quarter and inspects the equipment and that rubbery pad that the equipment sits on. this company will notify if something needs repaired and will facilitate the repair. and the cost per homeowner per month is well under a buck per month. I think that is peace of mind assurance that helps protect the community and each homeowner as a whole.

granted nothing will stop someone from bringing litigation, but having this quarterly inspection will be a great protection that the equipment is regularly inspected and safe to use.
TimB4
(Virginia)

Posts:16479


04/03/2019 4:31 AM  
Insurance costs can vary by State, County and HOA.
We have 2 playgrounds, sidewalks a bus stop shelter and carry a 1 million dollar liability policy.

Regarding reserves, what you will need to put away for expected maintenance of trail, playground, and pavilion will vary. If you haven't had a reserve study done in the past, you should have one done.

If the trail is dirt, you may need to grade and regravel.
If the trail is asphalt, you will need to seal, and repave.

The pavilion (like our bus stop shelter) may need to be powerwashed and sealed every few years.
At some point in time it will also need to be replaced.

Regarding playground equipment, it will need replaced over time. There will likely be unexpected repairs as well. mulch/padding will need to be replaced and topped off over the years.

To learn more about reserve studies, see the following thread in this forum (it's a link to the thread):
Subject: Reserve Studies/Funds 101


To determine insurance costs, write a request for proposal identifying the common elements the Association owns and contact insurance agents. I would suggest a million dollar liability policy but let the agent know that you are open to hearing options they would recommend.

Hope this helps,

Tim
KellyM3
(North Carolina)

Posts:1425


04/08/2019 10:30 AM  
Posted By TimB4 on 04/03/2019 4:31 AM
Insurance costs can vary by State, County and HOA.
We have 2 playgrounds, sidewalks a bus stop shelter and carry a 1 million dollar liability policy.

Regarding reserves, what you will need to put away for expected maintenance of trail, playground, and pavilion will vary. If you haven't had a reserve study done in the past, you should have one done.

If the trail is dirt, you may need to grade and regravel.
If the trail is asphalt, you will need to seal, and repave.

The pavilion (like our bus stop shelter) may need to be powerwashed and sealed every few years.
At some point in time it will also need to be replaced.

Regarding playground equipment, it will need replaced over time. There will likely be unexpected repairs as well. mulch/padding will need to be replaced and topped off over the years.

To learn more about reserve studies, see the following thread in this forum (it's a link to the thread):
Subject: Reserve Studies/Funds 101


To determine insurance costs, write a request for proposal identifying the common elements the Association owns and contact insurance agents. I would suggest a million dollar liability policy but let the agent know that you are open to hearing options they would recommend.

Hope this helps,

Tim




This is great information......the insurance costs aren't that great for our park. However, if you have private property (and enforce trespassing) but have an easily-accessible amenity like a playground, you can undercut your anti-trespassing efforts.
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