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Flickr photo credit: Jeff Kubina

Condo and apartment dwellers enjoy a number of benefits of community membership and ownership, not the least of which is the ability to enjoy amenities such as pools, recreation areas, and lawn care without the added burden of taking care of these areas. Owners can enjoy their properties freely – or can they?

A recent ruling in Colorado has put a rather large question mark over whether condo and apartment owners have the right to smoke on their own property. Heritage Hills Condominium Owners Association in Golden, Colorado passed an amendment to its bylaws that banned smoking in any area of the property, including individual units. Some residents sued, but a District Court judge ruled against them. The judge’s ruling determined that the smoke smell was no less offensive to neighbors as extremely loud noise, and that it permeated more than one area, creating a nuisance. Since the association’s bylaws prohibited nuisances that  are “a source of annoyance to residents,” the smokers were denied that right.

How much control does an association have over the actions of its residents? As this particular ruling shows, you do have some, but it has to comply not just with association bylaws, but also with federal statutes. And let’s face it – even the most diligent of associations can make a misstep or create a situation that violates someone’s rights or does not adhere to federal laws. In that case, an errors and omissions policy is essential. In such cases, the policy is intended to cover actions of your association board that resulted in claims or legal action. Not all claims will be covered, however. Policies that state included actions may determine that any claim not specifically included is excluded. Read the fine print.

If you’re unsure, work with your broker or insurer to obtain coverage for errors and omissions, and have your broker discuss with you what types of claims would fall under the errors and omissions policy.