HOA Insurance Policy

When you belong to a homeowners’ association (HOA), the HOA will manage maintaining and taking care of your community in exchange for a monthly fee from each homeowner. These fees go towards maintaining common areas such as parks, shared streets, or a community pool, and paying for insurance coverage. Every member of the HOA will pay an amount towards the insurance policy in accordance with your community’s governing documents.

What does it cover?

HOA Insurance may cover any community spaces and structures that are owned and managed by the HOA. HOA Insurance covers, at a minimum:

• General Liability: Provides coverage to protect the HOA from liability in the case that someone is injured on the HOA’s property.
• Property: Provides coverage to fix damage to common property owned by the HOA.

Other types of HOA Insurance coverage includes:

• Workers Compensation: coverage for employees or volunteers, including board members of the HOA.
• Directors & Officers: protects board members, HOA volunteers, and even the community’s property manager from being held liable for good faith decisions.
• Fidelity and Crime: provides coverage in the case that the HOA falls victim to embezzlement or theft.
• Earthquake & Flood protection
• Umbrella: provides extra coverage for increasing costs related to liabilities.

Does my HOA need all this coverage?

The requirement for HOA insurance can almost always be found in the HOA’s governing documents. HOA Insurance is critical for HOAs to protect the association in the case of an accident on the property or damage to the property itself. As a homeowner, despite the monthly fees, you can easily see the need for HOA Insurance. While a homeowner will have their own homeowner’s insurance to protect their home, HOA insurance is necessary to protect your shared HOA amenities as well as provide protections for individual homeowners from being personally liable in regards to their membership in common.

Claim examples – How coverage works

While it would be great if accidents never happened within your HOA, there are simply no guarantees. Here are some common claim examples and an illustration of how coverage may work in these instances:

• Your neighbor’s guest slips and breaks their arm at the community pool. General liability coverage could cover the guest’s medical expenses and lost wages, or defend a lawsuit if the association was alleged to be negligent in relation to the slip & fall.
• A fire burns down the play structure at the community park. Property coverage will pay to rebuild.
• You are a homeowner within an HOA and discover that a former board member was embezzling thousands of dollars from the HOA’s reserves. Fidelity and crime coverage would protect your HOA from the damages this former board member caused.

Why Click2bind for your HOA insurance coverage?

As an independent agency, we have access to multiple carriers that specialize in the community association industry. We do the research and comparison shopping for you, helping your board lock in the most competitive prices while getting a plan that best fits your communities needs, which also includes proper coverages that meet many of the standards required for government-backed lending for individual owners. We take a data-driven approach to find the perfect policy so that you have the coverage you need without paying for the things you don’t.