Community Association Insurance
Table of Contents
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.
Every HOA needs comprehensive insurance to protect its interests and the interests of residents and staff members. Find affordable coverage that meets your needs with Moran Insurance.
When it comes time to receive a quote for Florida HOA insurance, there are a few factors that have to 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.
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 of the basic requirements have been met, it is time to decide if any additional coverage is needed.
What Happens if You Don’t Have Insurance Coverage?
There are major risks for any association that doesn’t have up to date Florida HOA insurance coverage.
- Without insurance, your association will likely be in breach of the agreement signed with individual homeowners. This could lead to expensive litigation and liability for directors.
- Accidents on site will not be covered, creating the risk of lawsuits filed by staff members and subcontractors.
- HOA directors may be personally liable for damages in some cases, particularly when resulting from personal conduct. Officers can also face liability in some cases. Directors and officers insurance can provide essential protection with coverage for legal fees and settlements.
- Property damage will be costly to repair without insurance. This can devalue the community and potentially lead to lawsuits from homeowners.
- Local jurisdictions require that HOA’s have sufficient coverage for all expected risks. Your HOA risks breaches of local and state laws if there is no active insurance policy. Noncompliance with the law is often listed as one of the most significant risks that self-managed associations face.
Clearly, your association should be covered by a comprehensive Florida HOA insurance policy. You can find affordable options with Moran Insurance, thanks to our extensive knowledge of the market and vast network of large and niche insurance firms.
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.
Moran Insurance is a leading independent insurance agency in Florida. We offer business insurance solutions including Florida HOA insurance and condo association insurance. We work with insurance companies of all sizes, with our large professional network resulting in affordable options that meet your needs with no compromises. If you’re ready to discuss coverage for your HOA or condo association, it’s time to talk to the team at Moran Insurance.