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