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Did you know that homeowners insurance and insurance for homeowners associations are two different things? While obtaining insurance for your community association can be a complicated process; it doesn’t have to be. Read on to learn more about some of the coverage options you should include in your HOA insurance policy.
Just as your residents need insurance to protect their homes, your association needs insurance to protect the interests of the entire community. Learn more about Florida HOA insurance and find coverage with the best independent insurance agents in the state.
A community association or HOA is a planned community group with a set of rules for all the properties located within the community. As an HOA, you may require residents to get homeowners insurance to protect their individual home and property from losses, damage, and liability. However, you should also carry community association insurance to cover the homeowner’s association itself. A homeowner’s association needs insurance coverage just like an individual does, and community association insurance makes sure that your HOA has the coverage that it needs.
Insurance Coverage for Your HOA Needs
Knowing exactly what type of coverage your business or HOA needs can be challenging, but you don’t need to worry because we are here to help you figure it out. Here is a list of essential elements of a homeowner’s association insurance policy.
- Property Insurance or General Liability – This type of insurance covers the structures or buildings within the HOA. For example, general liability insurance covers the building that condos are located in and the condos themselves, but not the contents inside the condo. All personal items within the condo are the responsibility of the owner who must have their own individual policy to cover them.
- Standard Liability Insurance – The liability property insurance discussed above only covers the structures, but an HOA also needs standard liability insurance to cover visitors who sustain injuries on any property owned by the HOA.
- Fidelity Insurance – Although it would be ideal that a HOA would never see theft from within the organization, the reality is that the risk is always there. Fidelity insurance can protect your organization in cases where theft is committed by someone who works for the association. This covers direct employees as well as contractors. Depending on the policy, it can also extend to cover parties like property management companies and members of the organization. If you don’t have this type of insurance, you are exposing your organization to unnecessary risk. In addition to having a comprehensive insurance policy, you should also take steps to limit the chance of employee theft occurring.
- D & O Coverage – Directors and officers (D&O) liability insurance coverage is another essential coverage for a homeowner’s association. This coverage protects the people who work for the homeowner’s association from any liability when problems arise.
- Workers Compensation Insurance – Like any business with employees, a homeowner’s association must have workers compensation insurance. This insurance covers the HOA when an employee gets injured while working for the association. Even if an HOA just has contractors working at their facilities, they may still need workers compensation insurance depending on the situation.
- Garage Keeper's Insurance – This type of insurance is for those HOA’s that have parking options for non-members. Parking availability for non-members opens the HOA up to liability from vehicle damage or theft by guests parked in the HOA’s garage, and garage keeper’s insurance provides protection.
- Social Host Liability Insurance – This kind of coverage is great for homeowner’s associations that have a clubhouse or social gathering place. Whenever there is a place where members gather for events, there needs to be insurance coverage. This is particularly important for events serving alcohol on the grounds. When these events occur, it is imperative for an HOA to carry liability coverage, and social host liability qualifies.
Commercial Umbrella Liability for HOA Groups
Every HOA insurance policy will come with limitations. In the worst-case scenario, these limitations may not provide enough money to cover an event that has occurred.
If you want complete peace of mind when operating your homeowners association, you should include a Commercial Umbrella Liability Policy (CUP) with your standard package. This umbrella policy can provide excess coverage beyond the limitations of your existing policies.
Most CUP policies will run along with your individual policies, so there should be no gap in coverage. Working with an independent insurance agent like Moran Insurance will allow you to cover all your association needs each year. Talk to us today if you are looking for packaged HOA and Community Association insurance.
Find the Perfect HOA Insurance Coverage with Moran Insurance
Reach out to one of our experts at Moran Financial Solutions today to talk about your homeowner's association insurance coverage needs. Our friendly and professional team will find the policy that best suits your needs and your budget. Insurance should never be seen as an expense. The investment you make in your policy will protect you from loss and liability later on.
Your association deserves the best coverage possible. Talk to Moran Insurance for Florida HOA insurance that leaves nothing up to chance.