Homeowner associations are there to ensure that their communities thrive and to protect against any risks that would prevent them from doing so. However, an often-overlooked aspect of HOAs is the fact that they require protection against risks themselves. Whether you’re a new association or looking to improve on what you currently have, here are two of the key coverages you’ll come across when searching for insurance for community associations.
General Liability Insurance
General liability insurance covers you in case someone experiences an injury or property damage in the common area of your community. An example of this is a visitor tripping over a broken piece of sidewalk and sustaining an injury. Your policy will cover any expenses associated with a lawsuit.
Property insurance covers you in case any buildings or other common areas are damaged because of fires, vandalism, theft or select natural storms. Your policy will pay to repair or replace the damaged property. An example of this is one of your residents causing the clubhouse to catch on fire with their 4th of July fireworks.
Many insurance carriers offer umbrella policies to help you easily cover all your bases. Be sure to work with an experienced agent who understands insurance for community associations to ensure that your association is covered from all angles.