Improve your HOA & Community Association Insurance Coverage
Are you wondering about the high and rising cost of your current HOA insurance policy?
Reports have it that HOA insurance eats up 10% to 20% of HOA operating budgets and that they’ve spiked 30% higher of recent.
Fires, floods, landslides, hurricanes, lawsuits, repairs, property crime and accidents along with inflation have conspired to force insurance policy underwriters to push up premiums. If HOA insurance premiums are eating up your budget, this might be the right time to review your policy coverage, provider and pricing.
Here are a few common HOA/Community Association insurance problems to review:
- inaccurate building/equipment asset values
- no D&O coverage for the manager
- no building code and ordinance coverage
- inappropriate liability limits
- missing umbrella policy
Discover more about necessary and missing coverage.
The Right Coverage for Peace of Mind
If you don’t currently have HOA insurance, you could find yourself using your association reserve funds to pay for legal fees and settlement amounts. In a litigious country with weather extremes, not having insurance coverage is risky. Losses could be ruinous to your community.
Homeowners Association Insurance, (or community association insurance) is an insurance policy type designed to protect the common areas, structures, and liability risks associated with HOA’s.
Policies are divided into two components:
- liability coverage ( covering expenses from any legal action against the association)
- property damage (full or bare-bones coverage for physical damages to HOA buildings or common areas)
According to HOAmanagement.com, small associations can acquire a standard $1,000,000 to $2,000,000 general liability policy coating cost anywhere between $57 to $79 monthly and $684 to $948 annually. Given the usage and size of the property, compared to renters insurance ($25 to $35 per month) it is a bargain.
Yet, HOA insurance coverage may need to include more so getting the right policy is important.
HOA Insurance Policy Coverage to Review
Here are details of the key insurance components and reasons why HOAs need HOA insurance policies:
Property Coverage: includes coverage for the common areas and structures owned by the association, such as clubhouses, swimming pools, fitness centers, sidewalks, parking lots, and landscaping. This covers losses caused by perils like fire, vandalism, theft, or natural disasters.
Liability Protection: includes coverage for personal injuries to users of common areas or their property which are maintained by the association. Slip-and-fall accidents, injuries from faulty equipment, or property damage caused by negligence on the part of the association are the risks.
Directors and Officers (D&O) Liability Insurance: covers HOA board members and officers from personal financial loss in the event they are sued for alleged wrongful acts or decisions made within their official association role and capacity. This is vital coverage needed to attract and retain qualified board members.
Fidelity or Employee Dishonesty Coverage: This policy feature protects the HOA against theft or embezzlement committed by employees or board members. It can help the association recover losses resulting from fraudulent acts.
Umbrella Liability Coverage: this is additional liability protection beyond the limits of the primary liability policies. It’s good for HOAs facing significant liability risks or lawsuits that exceed the limits of their standard insurance policies.
Loss Assessment Coverage: covers the HOA when their insurance coverage is insufficient to cover a loss or when deductibles are enforced, which would require HOA management to turn to levy assessments on its members to cover the shortfall. Loss assessment coverage helps reimburse individual homeowners for their share of these assessments.
Property Value and Replacement Coverage: building ordinance coverage includes contingent liability, demolition, and unexpected cost of construction expenses.
Legal Defense Costs: helps cover legal expenses incurred while defending lawsuits or claims arising from covered incidents. It covers attorney fees, court costs, and settlements or judgments.
Shopping for HOA Insurance
Changes in your business structure, new facilities and equipment, growth of communities served, claims made, and trends in coverages offered can all impact policy pricing.
It’s important to work with an insurance broker to find providers and the right policies to cover all current risks and liabilities and get a better price.
HOA Insurance Companies
https://www.travelers.com/professional-liability-insurance/hoa National
https://www.statefarm.com/small-business-solutions/insurance/business-owners-policies/hoa-association National
https://www.farmers.com/business/industry/homeowners-association/ National
https://www.cauinsure.com/Coverage/ National
https://www.amwins.com/products/communityassociations-insurance-program National
https://pcsinsurancegroup.com/community-association-insurance/ Florida
https://balsigerinsurance.com/hoa-insurance/texas/ Texas
https://www.e360insurance.com/homeowners-associations-insurance-california/ California
https://southernstatesinsurance.com/business-insurance/insurance-by-industry/homeowners-association-insurance/ Georgia, Tennessee, South Carolina
https://www.cisainsurance.com/ Illinois
https://www.atlasinsurance.com/industries/aoao-insurance/ Hawaii
https://www.scicteam.com/community-association Colorado
https://arizonagroup.com/business-insurance/hoas-puds/ Arizona
https://directpointinsurance.com/hoa-insurance Nevada
https://chalkandgibbs.com/business-insurance/insurance-by-industry/homeowners-association-insurance/ North Carolina
https://w-ins.com/affordable-hoa-insurance-tacoma-bellevue-seattle-wa Washington
https://hudsonohioinsurance.com/business-insurance/specialized-business-insurance/homeowners-association-insurance/ Ohio
https://www.gatewayspecialty.com/community-association/ Pennsylvania
Is your HOA/Community Association Software a Bigger Liability?
Review the features our modern association management platform offers including eVoting, polling, online payments, mailing service, violation tracking, and professional-level accounting.
Call our sales team now at 415 800 1245 to discuss how easily you can migrate your HOA to ManageCasa™.
More on Associations: Implement New HOA Software | HOA Management Software | Landlord/Tenant Insurance Rising | Community Association Software | Comprehensive HOA Platform | What is an HOA Manager? | What is Association Management? | Payment Software for HOAs | HOA Mailing Solutions | Association Software Questions | Choosing an HOA Manager | Create Value for Residents
