What does Homeowner Association’s insurance cover?

There are a wide range of items that can be insured and policies that cover your interests and property. Homeowner associations generally lump insurance fees in with the assessments that are paid by homeowners who reside in that HOA. These fees may run anywhere from a few hundred dollars to over a thousand dollars . This policy will usually include coverage for common areas and shared spaces.

As is often the case, insurance is dependent upon the type of domicile you live in. For individual properties, the association’s insurance will probably cover very little, except for any power lines, water lines, pathways, driveways, or anything else that falls under the ownership of the homeowner association. For property owners, the majority of responsibility to insure your home and belongings fall unto the individual. This is not always the case for condos and townhomes; insurance would usually cover the exterior of the building containing all of the units, being that it is property of the community developer/association. Sometimes, this coverage may even extend further, covering repairs to walls and floors. Of course, in the event of something happening to the integral structure of the building, such as a fire, the association would need to file a claim in order to remedy that disaster. However, the interior of a unit usually falls under the same standards as an individual home; everything inside the residence is the responsibility of the tenant or owner to insure.

Homeowner association insurance does not stop there, however. It is also quite common, and often necessary, for board members to be covered by a policy known as D&O (directors and officers) insurance. This policy covers board members and representatives of the association, although it may specifically exclude certain roles. Unfortunately, there is not a policy for everything. Unpreventable and unpredictable events, also known as “acts of god,” are non-insurable because the risk cannot be assessed. These could include earthquakes, floods, acts of war, acts of terrorism, radioactive contamination, sinkholes, etc. This is not to say there is no way be covered for these incidents, but unique policies would need to be made and implemented, usually accompanied by high premiums. Never be afraid to reach out to your insurance provider, through your community manager or board of directors if needed, to find out exactly what your association’s insurance covers and, more importantly, what it does not cover. For more information on homeowner association insurance, examine our resource articles.

What does Homeowner Association’s insurance cover?

There are a wide range of items that can be insured and policies that cover your interests and property. Homeowner associations generally lump insurance fees in with the assessments that are paid by homeowners who reside in that HOA. These fees may run anywhere from a few hundred dollars to over a thousand dollars . This policy will usually include coverage for common areas and shared spaces.

As is often the case, insurance is dependent upon the type of domicile you live in. For individual properties, the association’s insurance will probably cover very little, except for any power lines, water lines, pathways, driveways, or anything else that falls under the ownership of the homeowner association. For property owners, the majority of responsibility to insure your home and belongings fall unto the individual. This is not always the case for condos and townhomes; insurance would usually cover the exterior of the building containing all of the units, being that it is property of the community developer/association. Sometimes, this coverage may even extend further, covering repairs to walls and floors. Of course, in the event of something happening to the integral structure of the building, such as a fire, the association would need to file a claim in order to remedy that disaster. However, the interior of a unit usually falls under the same standards as an individual home; everything inside the residence is the responsibility of the tenant or owner to insure.

Homeowner association insurance does not stop there, however. It is also quite common, and often necessary, for board members to be covered by a policy known as D&O (directors and officers) insurance. This policy covers board members and representatives of the association, although it may specifically exclude certain roles. Unfortunately, there is not a policy for everything. Unpreventable and unpredictable events, also known as “acts of god,” are non-insurable because the risk cannot be assessed. These could include earthquakes, floods, acts of war, acts of terrorism, radioactive contamination, sinkholes, etc. This is not to say there is no way be covered for these incidents, but unique policies would need to be made and implemented, usually accompanied by high premiums. Never be afraid to reach out to your insurance provider, through your community manager or board of directors if needed, to find out exactly what your association’s insurance covers and, more importantly, what it does not cover. For more information on homeowner association insurance, examine our resource articles.