Homeowners Association (HOA) Insurance

Homeowners associations (HOAs) offer many incredible benefits for their communities, such as common areas with pools, gyms and clubhouses. HOA members are expected to maintain their properties following their association’s standards. Residents pay recurring fees to their association in exchange for the HOA maintaining and protecting common areas, setting guidelines for residents and addressing liability issues. Some fee monies are also used to pay for general liability insurance that covers any property damage and liability. 

Because each HOA is different with varying insurance needs, it’s important to work with us to find the insurance coverage that meets your association’s specific requirements. 

What Does an HOA Insurance Policy Cover? 

An HOA insurance policy, sometimes referred to as a master policy, protects you if someone gets injured in a shared community space. An HOA is required by law to have a master policy or insurance that covers common areas shared between residents, such as pools, gyms or clubhouses. It’s likely a master policy won’t cover anything inside a resident’s unit, including walls, household goods or personal property. Residents need to purchase their own insurance for their homes. 

What Other Coverage Should an HOA Consider? 

HOAs perform a variety of roles for communities, and nearly all these interactions can be a source of liability. Other types of insurance coverage are commonly overlooked but may be valuable for your HOA to have. These include: 

Crime and employee dishonesty—Protects your community from various types of theft, fraud and embezzlement by HOA employees or officers.

Director’s and officer’s liability—This liability insurance reimburses directors and officers of an HOA for losses or defense costs from legal actions brought against them.

Employment practices liability—Protects HOAs if employees or ex-employees make a claim or sue.

Equipment breakdown—Provides coverage for damages or loss caused by a sudden mechanical breakdown, like a leaking water heater that causes water damage.

Workers compensation— HOAs may have increased risk if an uninsured contractor or volunteer worker is injured. You may consider a workers’ compensation policy to help cover the risks associated with those performing their duties for your HOA.

HOA community members should clearly understand what their HOA covers to ensure their properties are appropriately insured against loss.    How We Can Help  The complexities of HOA coverage can be challenging to navigate. Germani Insurance Services can work with you to determine what insurance coverage may best protect your community’s assets. Call us today at 310-733-2390 to get started.