What is indemnification?
Indemnification is a contractual arrangement where a homeowner may be required to compensate the HOA or condo association against certain liabilities, essentially agreeing to cover costs the association might otherwise absorb if something goes wrong on the owner’s behalf.
Why does indemnification matter?
This clause protects the association’s shared funds from being drained by one homeowner’s individual liability, keeping the financial risk with the person who actually created it rather than spreading it across every resident’s dues.
When You’ll Run Into This
This usually surfaces in governing documents around specific situations, contractor work on a unit, an event a resident hosts in a common area, where liability could otherwise fall on the association.
Legal note: this is general information, not legal advice. Rules and requirements vary by state and by community, so it is worth checking with your association’s attorney to get an accurate answer for your specific situation.
