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Flood insurance to help rebuild and repair buildings and common areas after a flood.Workers compensation for employees who work for the association.Equipment breakdown for boilers, furnaces, and other mechanical equipment.Other insurance coverage your association may need: D&O liability coverage protects board members from liability claims and lawsuits. Imagine a dishonest board member who steals members’ dues or a robbery that occurs in the HOA gym or other common building.ĭirectors & Officers Liability: It’s difficult to convince an owner in the association to sit on the board if they’re worried about getting sued. If new or updated regulations increase the cost of repairing or replacing a building, this helps cover the increased cost.Ĭrime Insurance: Crime that impacts community spaces or the association board of directors can be covered by crime insurance.
HOA INSURANCE UPDATE
That being said, most condo owner associations and homeowners associations need specific forms of insurance coverage.īusiness Liability Coverage: When someone is injured or suffers property damage in an association-owned part of your community, the HOA or COA can be held liable for their medical expenses or repairs.Ĭommercial Property Insurance: This helps pay for damage to association buildings and common property caused by fires, storms, and other covered perils.īuilding Ordinance Coverage: Over time, you’ll need to update or replace old buildings in your community. What kind of insurance coverage does HOAs an COAs need?Īll associations are unique in their design, common areas, buildings, and other insurable needs. None of these coverages include a condo unit owner’s personal property. Single entity: The basic internal structures of the unit are covered under the policy including fixtures, cabinets, floors, and ceilings, but it does not cover improvements made by the owner.Īll-in coverage: The COA insurance covers the entire condo unit including fixtures, cabinets, floors, and ceilings, as well as improvements made to the internal structure of the unit. You may choose a policy that requires the owner to insure the interior walls on their own policy. There are three main types of COA insurance coverage:īare walls: The most common form of COA insurance, this only insures the roof, walls, ceilings, floors, and elevator. However, the coverage varies from association to association.
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Condo owner associations must go a little further in their coverage than a typical HOA.ĬOA insurance must cover the building that the units are housed in. The specifics of this are governed by your bylaws, but in general HOAs and COAs are responsible for covering common buildings and areas used by owners and their guests. What are HOAs and COAs responsible for insuring? Whether you’re a new association in a new development or you’re a long-running COA or HOA looking for better insurance, your association needs very specific coverage. Every COA and HOA must have an association master policy based on your specific bylaws that detail what the association will cover and what the home or condo owner is responsible for. Whether your community is part of a homeowners association (HOA) or you’re on the board of a condo owner association (COA), insurance is a vital part of the organization.