Speed Bumps Are Allowed
Speed bumps are asphalt mounds installed on streets to slow traffic. Some argue that installing speed bumps is a capital improvement, i.e., the addition of a component that did not previously exist. As such, their installation cannot be funded from reserves since reserve monies are set aside for existing common area components.
Funding from Reserves. However, private streets are existing reserve items and should include safety features such as reflectors, striping, signage, and the like. These are components that fall within the board of directors' discretion. If the cost of installing speed bumps is reasonable, it could be justified from street reserves. If the cost is high and reserves are insufficient, a special assessment would be required to pay for the installation of speed bumps. If a safety concern can reasonably be demonstrated and the cost of installation is a small percentage of the street funds, I suspect a judge would side with the board in using reserve funds for that purpose.
Fire Department. Before installing speed bumps, associations should contact the appropriate fire authorities. They have jurisdiction over their installation since it may affect their response time to a fire. They may require a particular size, placement, signage, and striping.
Insurance. An association's existing insurance should cover any injuries or damage related to the speed bumps. At the time of this writing, Farmers Insurance covers an association that gets sued due to an accident related to speed bumps, regardless of whether the speed bumps were present at the time the policy was written or installed after policy inception. Under their policy, boards do not need to amend the policy to be covered. Boards should notify the association's insurance agent of the installation to ensure they are covered and to determine whether the insurance carrier has guidelines for marking the speed bumps to minimize risk. For example, Farmers provides a Loss Control Guide that property managers and directors can use when evaluating potential hazards on the property. It includes a checklist that asks if speed bumps are installed in necessary areas and painted a contrasting color so that they are clearly visible to drivers.
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