HOA Insurance Coverage

As a homeowner, it is important to understand the types of insurance available to protect your property. One type of coverage that you should be familiar with is HOA insurance.

What is HOA Insurance?

HOA insurance, also known as “master policy” insurance, is a type of insurance purchased by a homeowners association (HOA) to protect common areas and certain aspects of individual units in the community.

The specific coverage can vary depending on the policy, but typically includes the exterior of buildings, roofs, common areas like swimming pools or clubhouses, and liability coverage for accidents that occur on the HOA’s property.

It is important to note that HOA insurance does not cover individual units and their contents, which is why homeowners are also encouraged to purchase their own insurance policies.

HOA insurance can be beneficial in helping to protect property values and ensuring that the community as a whole is protected against certain risks and liabilities.

Homeowners who live in an HOA-governed community should be familiar with their association’s insurance policy and coverage to ensure they have the appropriate level of protection for their own property.

Types of HOA Insurance

HOA insurance can be broken down into several different types of coverage:

FAQ

Q: Do I need HOA insurance?

A: As a homeowner in an HOA-governed community, you do not need to purchase HOA insurance on your own. The association’s policy should cover common areas and certain aspects of your individual unit. However, you should still consider purchasing your own insurance policy to protect the contents of your unit and personal liability.

Q: What if I don’t agree with the HOA’s insurance policy?

A: Homeowners who disagree with the HOA’s insurance policy can bring up their concerns at the association’s meetings and discuss possible changes. It is important to note that the HOA board has a legal obligation to act in the best interest of the association as a whole.

Q: What happens if there is a claim on the HOA’s policy?

A: If there is a claim on the HOA’s policy, the board will decide how to proceed based on the policy’s coverage and the circumstances of the claim. Homeowners affected by the claim will be notified and kept informed of any actions taken by the board.

Q: Can I waive HOA insurance coverage?

A: No, homeowners cannot waive HOA insurance coverage. The association’s insurance policy is necessary to ensure the protection of the community as a whole and to maintain property values for all homeowners.

Q: Can the HOA change its insurance coverage?

A: Yes, the HOA can change its insurance coverage, but any changes must be made through a vote by the association’s board members. Homeowners should be informed of any changes made to the association’s insurance policy.

Conclusion

HOA insurance is an important aspect of protecting your property in an HOA-governed community. By understanding the types of coverage available and ensuring that your association has the appropriate level of insurance, you can help to maintain the value of your property and the safety of your community.