Homeowner associations are responsible for many things; clean streets, neighborhood pools, parks where the kids can play, community buildings, and much more. Whether your homeowner association is part of a brand new master-planned community, or has been established for decades, ensuring everything in your community runs smoothly is no small feat (and takes a lot of hard work). (But the scary part) is that years of (hard work) can be undone in the blink of an eye. However, homeowner association insurance can help you avoid many of the most common (as well as the uncommon) problems faced by communities.
What is homeowner association insurance?
A homeowner's association (also known as an HOA) is, at its most basic, an organization that oversees a housing development, condominium complex, or other such subdivision, where members are responsible for creating and enforcing rules. Often times homeowner's associations will collect fees or dues in order to cover maintenance and upkeep costs for common areas such as parks and pools.
As such, homeowner association insurance is intended to cover the association, its members, as well as its physical assets (if any) from damages arising from property and liability claims.
Why do I need homeowner association insurance?
Even though nearly all homeowner's associations are legal entities set up for specific purposes, they can be held liable for accidents that occur on association-owned property, which would include individual association members, as well as any physical property it owns. Without homeowner association insurance, your association could face insurmountable…
While each homeowner association insurance carrier can offer different coverages under their policies, there are typically two primary sections to any homeowner association insurance policy. Your Emerge Insurance Agency representative will be sure to fully explain your policy in detail, should you have any questions:
Coverage for individual members of the association. This would include directors, officers, trustees, committee members, and even volunteers, who could be held personally responsible for decisions made as part of the association.
Coverage for assets owned by the homeowner's association. This section covers any physical assets owned by the homeowner's association, including common areas (e.g. parks, pools, etc.), as well as liquid assets such as money collected through HOA fees, etc.
What does homeowner association insurance NOT cover?
Each homeowner association insurance carrier will have slightly different variations on the exclusions found within their policies, but two typical homeowner association insurance exclusions are:
Earth Movement/Flood – As is the case with most standard homeowner's policies, homeowner association insurance almost universally excludes losses resulting from earth movement, which would include sinkholes as well as floods.
Cyber Theft – For example: If someone were to break into the association's conference room and steal cash from a deposit box, this would typically be covered. However, if this same criminal were to hack into the association's bank account and steal the money electronically, this is generally excluded.
As always, if you have a question about exclusions under your specific homeowner association policy, it's best to speak with your friendly Emerge Insurance Agency representative today.
What discounts are available on homeowner association insurance?
Because homeowner association insurance is a form of commercial (versus personal) coverage, there may not be as many discounts available as there are with more common forms of insurance, such as home and auto. Be sure to discuss your homeowner association policy with a representative at Emerge Insurance Agency, and we'll be happy to get you the best rate possible.
What should I avoid when purchasing homeowner association insurance?
There are many factors to consider when purchasing homeowner association insurance, including the size of your HOA, its involvement in the community, the role of its members, as well as its financial status. When you sit down with your Emerge Insurance Agency representative, we'll be sure to ask the right questions to get you the coverage you need.
How can Emerge Insurance Agency help with homeowner association insurance?
At Emerge Insurance Agency, we're passionate about finding you the highest level of homeowner association insurance coverage, at the lowest possible price. We are an active participant with the Community Associations Institute, and are experts at helping our clients obtain HOA coverage of all kinds.
Board members should understand the consequences of being without adequate insurance. We will analyze your HOA situation, determine your insurance needs and find an affordable policy that works best for your association.