THE INS AND OUTS OF FLORIDA HOA INSURANCE AND COMMUNITY ASSOCIATION INSURANCE
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The Ins And Outs Of Florida HOA Insurance And Community Association Insurance
While there are some who believe that Florida HOA insurance and community association insurance are interchangeable, they are not one and the same. A homeowner's association in Florida must obtain community association insurance. Liability, property, glass, umbrella, workers compensation and crime/fidelity bonds are covered with the use of community association insurance.
Each client is going to have their own HOA or community association needs, and these must be discussed openly. These matters are not always easy for a client to understand. Moran Insurance can simplify the process and ensure that you have the best coverage for your unique needs.
When it comes time to receive a quote for Florida HOA insurance, there are a few factors that must be considered. Be sure to read on and learn more...
Knowing the Difference Between Liability and Property
This is one of the key differences that Florida residents must be aware of when it comes time to seek a quote. These are two of the most crucial elements of any Florida HOA insurance policy. If the property is encompassed by the Homeowner's Association, it must remain protected.
Meanwhile, liability insurance is more focused on the people that will be spending time on the property. If someone is injured on the property, this can lead to costly lawsuits. With liability insurance, the policyholder remains protected in all instances. Pool accidents, public fires and other various issues are covered.
While property insurance and liability insurance are vastly different, they are both required aspects of any Florida HOA insurance policy.
Check the HOA's Governing Documents
The governing documents that are provided by a Florida HOA will play a major role in the process as well. Before seeking a quote, take the time to look over these documents. These documents will typically state that all property must be covered. Be sure to take a closer look at what is owned by the Homeowner's Association. Land and public buildings are included in most instances.
The more property that is listed in these documents, the more coverage a policyholder is going to require. Take the time to consider any and all worst-case scenarios. This provides the policyholder with the necessary coverage, as well as peace of mind.
Learn More About Each Form of Coverage
There is a wide range of coverage that can be obtained. While the earlier requirements have already been discussed, some policyholders may decide that they would like to purchase coverage that has been deemed optional. Lawsuits, losses and damages must always be covered. Once all the basic requirements have been met, it is time to decide if any additional coverage is needed.
For most associations, the following will need to be included within a larger insurance package:
- Property Insurance : Property insurance will be necessary to cover the structures, features, and amenities that exist on association and public spaces. Property insurance for individual homes will usually be the responsibility of the homeowner. Association property insurance typically covers fire, theft, vandalism, damage, etc.
- Fidelity Insurance : Within any organization, the risk of theft is ever-present. Staff members, contractors, and directors could take money, property, or other assets that are owned by the association. Although most association directs would like to think that all of their staff are trustworthy, it’s a simple fact that employee theft and fraud is a serious problem in the united states. When looking at employee theft statistics, it’s unsettling to learn that the average organization loses 5% of its annual revenue to fraud. Fidelity insurance will provide coverage for losses caused by fraud and theft.
- Directors and Officers Liability Insurance : Officers, board members, and directors need protection when carrying out their duties. Directors and officers liability insurance will provide coverage if a member of your leadership team is sued by a third party or even a member of the association. Without this coverage, your directors and officers would face unnecessary financial risk, especially in the form of personal lawsuits.
- Liability Insurance : In addition to specialized directors and officers insurance, your association will need to carry an adequate amount of general liability coverage. This insurance will activate when accidents or damages are claimed by third parties, such as visitors to your association grounds. Liability insurance will offer a financial safety net in cases that the association is sued or reaches an out of court settlement to cover damages.
- Worker’s Compensation Insurance : For most associations in Florida, worker’s compensation insurance is essential. This is a legal requirement for any business entity that hires more than four full-time staff members. This means that if you have groundskeepers, maintenance staff, and security staff on the payroll, you’ll need to include them in a worker’s comp plan. This type of insurance covers accidents and injuries that occur, ensuring medical treatment for your team. Associations can learn more about their obligations as employers by visiting the Florida CFO Division of Workers’ Compensation.
Consulting with an Experienced HOA Insurance Agent
Fortunately, an experienced insurance agency can always provide the necessary assistance in this regard. They offer Florida HOA clients the ability to obtain the protection they need and go above and beyond as well. All it takes is a simple consultation to let the client know exactly what their options are going to be.
There is no shortage of situations to consider and it can be difficult for clients to decide what coverage is most essential. Each client is going to have their own needs that must be discussed openly. These matters are not always easy for a client to understand. That's why it is important to ask as many questions as possible and prepare for any possible issues that may occur.
If you’re ready to explore your insurance needs and coverage options for the year ahead, the expert team at Moran Insurance is standing by to help. Contact us today to find policies that offer peace of mind.