Members of homeowners associations are often responsible for the maintenance of common areas within the neighborhood including landscaping and snow removal. HOA’s are also typically responsible for implementing and enforcing rules, which means when residents fail to adhere to those rules, legal action may be taken. In order to protect the community and members of the homeowners association from risks and liabilities, HOA’s are required to obtain an HOA insurance policy.
Who Should Acquire HOA Insurance?
If you live in a house or condominium that has a Homeowners Association, you are more than likely indirectly paying towards an HOA insurance policy through HOA dues. Members of homeowners associations are responsible for acquiring HOA insurance, also referred to as the master policy.
Homeowners should still hold their own personal homeowners insurance or condo insurance policy to protect their personal property and liabilities which occur within their home.
What Does Homeowners Association Insurance Cover?
Homeowners associations obtain an HOA insurance policy in order to protect shared community areas, such as pools or playgrounds, from physical damage and liabilities such as guests who get injured.
It is important to note that HOA insurance covers liabilities within shared communal spaces, therefore liabilities associated with guests injuring themselves in community member’s homes may not be covered under the policy.
Have Questions About HOA Insurance? See Our FAQ
Why do homeowners associations need HOA Insurance?
Homeowners associations are responsible for managing common areas and enforcing community rules, which exposes them to a range of risks. HOA Insurance provides crucial coverage against property damage, legal claims, and liability issues, ensuring the financial stability of the association and the protection of its members.
What does HOA Insurance cover?
A comprehensive HOA Insurance policy may include:
– General Liability Insurance
– Property Insurance for common areas
– Directors & Officers (D&O) Liability Insurance
– Fidelity/Crime Insurance
– Workers’ Compensation Insurance (if the HOA has employees)
– Umbrella/Excess Liability Insurance
Pro Insurance Group can help customize a policy to meet the specific needs of your association.
What is Directors & Officers (D&O) Liability Insurance, and why is it important?
D&O Liability Insurance protects the board members of an HOA from personal liability arising from decisions they make on behalf of the association. This coverage is essential because it safeguards the personal assets of board members against lawsuits related to their duties.
How much does HOA Insurance cost?
The cost of HOA Insurance depends on various factors, including the size of the community, the types of coverage required, and the association’s claims history. Pro Insurance Group can provide competitive quotes by working with multiple carriers to find the best coverage at the right price for your HOA.
Can Pro Insurance Group help with Workers’ Compensation Insurance for our HOA employees?
Yes, if your HOA employs staff, Workers’ Compensation Insurance is crucial. It protects your employees in the event of work-related injuries or illnesses and helps your HOA comply with legal requirements. Pro Insurance Group can help you obtain the right Workers’ Compensation coverage for your association.
Reach Out To A Specialty Insurance Broker
Members of homeowner associations that currently do not have insurance or are looking to save money on their policy should reach out to our experienced specialty insurance brokers today.
To receive a competitive quote for a homeowners association insurance policy, reach out to our brokers at Pro Insurance Group by calling 833.619.0770 or by requesting a quote online.