Boerne’s master-planned communities, from Cordillera Ranch to Esperanza, run on volunteers. Board members approve budgets, review architectural requests, and enforce deed restrictions under rules shaped by Texas Property Code Chapter 209. That raises a fair question for anyone thinking about running: if a neighbor sues the board, whose insurance answers?
Three Layers That Protect a Board Member
Layer One: The Association’s D&O Policy
What it’s built for: Directors and officers coverage responds to “wrongful act” allegations tied to board decisions, such as denied fence requests, uneven rule enforcement, or breach of fiduciary duty claims.
Watch for: Many D&O policies exclude intentional misconduct, and most don’t cover bodily injury or property damage.
Layer Two: The Association’s General Liability
What it’s built for: Injuries and property damage in common areas, like a fall at the community pool or clubhouse.
Watch for: Limits shared across the whole community, which can run thin on a serious claim.
Layer Three: Your Personal Umbrella
What it’s built for: Extra liability above your home and auto policies for bodily injury, property damage, and certain personal injury claims.
Watch for: Many umbrellas exclude acts as a director or officer of an organization. Some carve back coverage for unpaid nonprofit board service, while others don’t. Even when that carve-back exists, an umbrella usually isn’t designed for decision-based disputes the way D&O is.
Where the Gaps Tend to Hide
The trouble spot is the space between layers. A board decision claim may fall outside your umbrella, while the association’s D&O limit or exclusions leave part of the claim uncovered. Before accepting a seat, ask for the association’s D&O declarations page and confirm who counts as an insured.
Trevino Insurance Services in Boerne, TX can read your umbrella’s board exclusion line by line and compare it with the association’s coverage. Our post on questions to ask when buying umbrella insurance is a helpful companion, and our umbrella insurance page covers the basics. For questions about board authority or indemnification, an HOA attorney is the right resource.
Talk with Trevino Insurance Services, proudly serving neighborhoods across Boerne, TX and the Hill Country.
