For instance, the governing documents may have a list of all assets that must be insured and a minimum amount for HOA insurance. Before you start looking for an HOA insurance policy, take note of the insurance requirements outlined in your governing documents. Your governing documents will likely have provisions on insurance. Check Your Governing Documents for Provisions on Insurance Having an umbrella policy can ensure that your community is sufficiently covered from liabilities.ģ. It is a supplemental policy that increases the limits of your insurance coverage in case there are liabilities caused by emergencies or unforeseen situations. Umbrella coverage is separate from your master insurance policy. Does Your Community Need an Umbrella Policy? Since these criminal acts can be financially devastating, communities must include this type of insurance coverage in their overall policy.Ģ. If you have D&O insurance at the time the claim was filed, you will be covered.Ĭrime and fidelity insurance will protect your community from financial losses due to theft, embezzlement, and other illegal activities. This is important because many people do not file a claim right away. Directors & Officers (D&O) Liability Insuranceĭ&O insurance coverage will protect board members from becoming personally liable for the actions they take while performing HOA duties.Īs a claims-made policy, D&O insurance will cover all claims that are made while the policy is in effect.Worker’s compensation insurance will protect the association from legal and medical claims in case employees, contractors, volunteers, or anyone doing a service for the HOA gets injured. Catastrophe Insurance/Natural Disaster InsuranceĬatastrophe insurance will cover property damage caused by natural disasters such as hurricanes, typhoons, earthquakes, and floods.
For instance, if a homeowner or guest gets hurt while in the swimming pool area, liability insurance will cover the resulting medical and legal costs. Liability insurance also offers more coverage for accidents or injuries sustained within the HOA’s communal areas. It can cover cases of vandalism, theft, or damage. Property insurance has more comprehensive coverage for the association’s physical assets. Most HOAs purchase supplemental policies to cover potential gaps in their master policy. While this policy can cover a wide range of situations, it is not a complete or comprehensive insurance plan. To find the best HOA insurance policy for your community, board members must know the different types of insurance policies for HOAs.Ī master policy is a general policy that includes property insurance and general liability insurance.
Here are 5 important things you must understand when looking for HOA insurance services:
Without it, board members will really have a hard time finding the best insurance policy for their HOA community. However, they should at least have basic knowledge of HOA insurance. HOA board members do not need to be insurance experts. HOA Insurance Services: 5 Important Things to Understand What type of insurance does the HOA need? How extensive should the coverage be? How do you get HOA insurance? In this article, we will discuss everything you need to know when looking for HOA insurance services. You may have many questions about insurance. How much do you know about homeowners insurance services? Most HOA board members understand that they need insurance, but many do not know the specifics of insurance.
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