What Does Homeowners Association Insurance Policy Cover?

 

Homeowners associations (HOAs) have very exceptional insurance needs. Although the property faces the same risks as other types of properties, the parties responsible for covering the several elements of the property differ.

What Does A HOA Policy Typically Cover?

The master policy, which is the Florida homeowners' association insurance policy, covers various things. Typically, a visit to a Florida Homeowners Association Insurance Agent will educate you more about the HOA policy. Some of the most common things that are covered under this policy are:

• Property – The homeowner's association must cover any shared property within the community. That comprises areas like sidewalks, parking lots, elevators, basements, roofs, swimming pools, fitness centers, garages, hallways, and meeting rooms. It should also cover any equipment that is shared by the community, including boilers, oil tanks, and water heaters.
• Building Coverage – it is usually the responsibility of the individuals that own the units within the community. However, the HOA mater policy should provide insurance coverage for buildings. There are three types of building coverage that a master insurance policy will provide, which include:

• Bare Walls – This insurance policy covers basic elements of the buildings like roofs, walls, floors, and elevators. 
• Single Entity Coverage – This coverage insures the standard elements of a building and some standard finishes within the units, excluding the residents' personal property.
• All-In Coverage – This type of insurance covers fixtures, additions, installations, and improvements inside the units. It is considered comprehensive coverage.

• General Liability – this type of insurance provides wider coverage for various types of incidents that can occur within the FL community. That includes personal injuries and property damage. If a delivery person or resident slips and falls on a walkway, general liability insurance should cover the cost of any damages. If someone claims that their property was stolen or spoiled while on the HOA's shared spaces and files a lawsuit, general liability insurance will cover the damages.
• Directors and Officers Liability – Did you know that you can be held personally responsible for decisions and actions made on behalf of your association as a director, trustee, officer, employee, or a volunteer of a community homeowner association, ? Fortunately, the HOA policy protects the association board members against claims alleging wrongful acts in performing their duties.

A homeowner's association's objective is to ensure that the FL community it governs is safe and secure. That is why it is imperative for HOAs to ensure that they are adequately insured.