HOA & Condo Insurance Blog

When an HOA experiences roof damage, the board must often make quick decisions while also protecting the association’s budget. A roof claim may involve storm damage, wind, hail, falling debris, water intrusion, or another covered event. The final outcome may depend on the HOA master policy, the cause of loss, the condition of the roof before the claim, and the documentation provided. HOA property insurance, sometimes called an HOA master policy, is generally designed to help cover buildings and common areas the association is responsible for. This may include roofs, hallways, lobbies, clubhouses, fences, pools, and other shared property, depending on the governing documents and policy terms. Here are the important factors HOA boards should […]

Water damage is one of the most stressful situations an HOA board can face. A leaking roof, burst pipe, failed sprinkler system, sewer backup, or storm-related water intrusion can quickly affect common areas, building systems, and individual units. The first 48 hours are important because water can continue to spread, materials can deteriorate, and mold concerns may develop if the affected areas are not dried quickly. The CDC recommends drying wet buildings and materials within 24 to 48 hours when possible to help prevent mold growth. In the first 48 hours after water damage, an HOA board should make the area safe, stop the water source, prevent further damage, document the loss, notify the insurance […]

Before recommending umbrella insurance, it helps to understand where your liability exposure comes from. The same person may have personal risks, business risks, or both. That is why we may ask questions such as: What property do you own personally? Do you have a home, condo, rental property, or vehicles? Do you operate a business, LLC, corporation, side business, or independent work? Who comes onto your property — guests, tenants, customers, employees, vendors, or delivery drivers? Are any vehicles used for work-related errands, deliveries, sales calls, or jobsite travel? Do any contracts, leases, or client agreements require higher liability limits? These details help separate personal exposure from business exposure. Umbrella insurance can add another layer […]

Quick Answer: HOA cyber liability insurance helps protect homeowners associations when a cyber incident causes financial loss, exposes resident or vendor data, disrupts operations, or creates legal and recovery expenses. It may help with covered costs related to email scams, wire fraud, ransomware, data breaches, business interruption, and incident response support. Homeowners associations now depend on email, online banking, resident portals, accounting software, payment processors, and property management platforms. These tools make it easier to run the community, collect assessments, pay vendors, and communicate with homeowners. They also create new risks. An HOA may not think of itself as a cyber target, but cyber criminals often look for organizations that manage money, store personal information, […]

HOA Crime Fidelity Insurance helps protect a homeowners association from covered financial losses caused by theft, fraud, forgery, employee dishonesty, board member dishonesty, property manager theft, computer fraud, and certain electronic funds transfer fraud. It is also known as HOA Crime Insurance, HOA Fidelity Insurance, fidelity bond coverage, or employee dishonesty coverage. This coverage is especially important for HOAs that collect dues, maintain reserve funds, work with vendors, use online banking, or rely on board members and property managers to handle association finances.   What Does HOA Crime Fidelity Insurance Cover? HOA Crime Fidelity Insurance may help cover financial losses involving: Theft of association funds Employee dishonesty Board member dishonesty Property manager theft Forged or […]

HOA board decisions that can trigger a D&O insurance claim include rule enforcement, architectural approvals, assessments, elections, vendor contracts, budgeting, reserve planning, discrimination allegations, employment decisions, collection actions, and alleged financial mismanagement. HOA board members are often volunteers, but their decisions can affect property values, association budgets, vendors, homeowners, tenants, and the long-term direction of the community. Even when a board acts in good faith, a homeowner, resident, vendor, or other party may disagree with a decision and file a claim. HOA Directors & Officers Insurance, often called HOA D&O Insurance, is designed to help protect board members, officers, and in many cases the association itself when claims allege wrongful acts, errors, omissions, mismanagement, or […]

Many homeowners associations carry a general liability policy with a $1 million limit. That amount may sound like a lot of protection, but a serious accident, lawsuit, or injury claim can become expensive very quickly. When medical bills, legal defense costs, lost wages, and settlement demands are added together, a $1 million policy may not go as far as the board expects. HOA umbrella insurance, also called excess liability insurance, is designed to add another layer of protection above the association’s underlying liability policies. This can help the HOA protect its budget, reserves, board members, and homeowners from the financial impact of a large claim. Here are the common reasons an HOA should consider whether […]

When a homeowners association reviews its insurance program, one of the most important coverages to understand is HOA General Liability Insurance. Within that policy, the section often described as “Premises & Operations” plays a major role in protecting the association from everyday liability risks. Premises and operations coverage is designed to help protect the HOA when a claim arises from the ownership, maintenance, or use of common areas, or from the normal activities of the association. In simple terms, this is the coverage that may respond when someone is injured in a common area or when the HOA’s operations accidentally cause damage to someone else’s property. For many associations, this coverage is just as important […]

Many HOA board members assume that auto insurance is only needed when the association owns a truck, van, maintenance vehicle, or security vehicle. This is a common misunderstanding. Even if your HOA does not own any vehicles, the association may still have an auto exposure when someone drives for HOA business. This can include board members, volunteers, property managers, or employees using their personal vehicles for community-related errands. Here are the basic elements that an HOA should consider when deciding whether auto insurance is needed.   HOA-Owned Vehicles If the association owns, leases, or titles a vehicle in the HOA’s name, then the HOA will usually need commercial auto insurance. This may apply to maintenance […]

There are many kinds of insurance that a homeowners association may need to protect its buildings, common areas, board members, funds, and day-to-day operations. One coverage that is sometimes overlooked is HOA worker’s compensation insurance. HOA worker’s comp is designed to help protect the association when an employee is injured or becomes ill because of work-related duties. This may include medical expenses, lost wages, disability benefits, occupational illness claims, and certain employer liability situations. Workers’ compensation rules vary by state, but many employers are required to carry coverage once they have employees. In Illinois, for example, employers are generally required to provide workers’ compensation insurance for almost everyone hired, injured, or whose employment is localized […]

There are standard questions that we ask when helping an HOA or condominium association review its property insurance. One of the most important questions is also one of the easiest to overlook: Are your buildings insured for the right replacement cost today? HOA building valuations are not the same as market value, tax value, or the price someone paid for a unit. The insured value should reflect what it would cost to repair or rebuild the association’s covered property after a major loss, based on today’s construction costs, materials, labor, building codes, and policy requirements. In general, your HOA should review insured values every year and consider a professional replacement cost appraisal every three to […]

There are many questions that an HOA board should ask when reviewing its HOA property insurance. Most boards look closely at the building limit, deductible, premium, and whether roofs, common areas, clubhouses, fences, elevators, or other shared property are included. One coverage that is often overlooked is ordinance or law coverage sometimes called building code upgrade coverage. This coverage can matter after a covered property loss when the association is required to repair or rebuild according to current building codes, not the codes that existed when the property was originally built. Ordinance or law coverage is generally designed to help with losses caused by the enforcement of laws or ordinances that regulate construction and repair […]

There are important questions that every HOA board should ask before choosing or renewing an HOA property insurance policy. One of the most important questions is whether the association’s buildings and common areas are insured on a replacement cost basis or an actual cash value basis. In simple terms, replacement cost coverage may help an HOA repair or replace covered property without subtracting depreciation, while actual cash value coverage usually subtracts depreciation based on age, condition, and useful life. For HOA boards, this difference can affect claim payments, reserves, deductibles, and possible loss assessments after property damage. This may sound like a technical insurance detail, but it can have a major effect on how much […]

There are many details that an HOA board must consider when purchasing HOA property insurance. One of the most important details is the amount of insurance carried on the buildings and common areas. If the coverage limit is too low, the association may discover at claim time that the insurance company will not pay the full amount of a covered loss. This problem is often connected to a coinsurance clause. Coinsurance is a property insurance provision that encourages policyholders to carry a reasonable amount of insurance. If the insured does not maintain the amount required by the policy, the insured may have to share a larger part of the loss. Here are the basic things […]

There are standard questions that we ask HOA boards, condo associations, and property managers when reviewing an HOA property insurance policy. One of the most important questions today is: what deductible can your association realistically afford? In the past, many associations treated the deductible as a small detail. Today, the deductible can be one of the biggest financial planning issues in the entire HOA master policy. An HOA deductible is the amount the association must pay before the insurance carrier begins paying for a covered claim. This may apply to the building, roofs, common areas, clubhouses, fences, pools, garages, mechanical systems, and other association-owned property, depending on how the policy and governing documents are written. […]

Many HOA boards look closely at the insurance premium, total building limit, and covered property. However, the deductible can be just as important, especially when the policy has a separate wind or hail deductible. A wind/hail deductible is the amount the association must pay before the insurance company begins paying for a covered wind or hail claim. For an HOA, this can apply to roofs, siding, gutters, fencing, clubhouses, garages, shared structures, or other property the association is responsible for under the master policy. HOA property insurance, often called an HOA master policy, is designed to help protect buildings and common areas the association is responsible for. It may include coverage for roofs, hallways, lobbies, […]

When someone buys a condo, one of the first insurance questions is usually simple: “If my HOA already has insurance, do I really need my own condo policy?” It is a fair question. Condo owners pay HOA dues, and part of those dues often helps pay for the association’s master insurance policy. From the outside, it may seem like the building is already insured, so the individual owner should not need much more. But condo insurance usually does not work that way. In most cases, condo owners still need HO-6 insurance even when the homeowners association has a master policy. The HOA’s policy is mainly there to protect the association, the building, and shared areas. […]

Choosing the right HOA master policy can feel confusing, especially when terms like bare walls, walls-in, and all-in start getting used. These coverage types all deal with the same basic question: Where does the HOA’s insurance responsibility stop, and where does the unit owner’s responsibility begin? That answer matters. It affects premiums, claims, deductibles, owner expectations, and how smoothly the community handles property damage. In general, bare walls coverage is the most limited, walls-in coverage offers a middle ground, and all-in coverage provides the broadest protection. However, the right choice depends on your association’s governing documents, property type, budget, risk tolerance, and overall claims strategy. For HOA and condo association boards in Illinois, understanding the […]

Rebuild Cost vs. Market Value Choosing the right amount of homeowners insurance usually starts with one question: how much would it cost to rebuild your home if it were badly damaged or destroyed? That number is often different from your home’s market value, purchase price, tax value, or mortgage balance. For homeowners insurance, one key number is the cost to rebuild the home after a covered loss. This is often called the rebuild cost or replacement cost estimate. It is different from market value. Quick Answer Most homeowners need enough homeowners insurance to cover the estimated cost to rebuild the home, replace personal belongings, pay for temporary living expenses after a covered loss, and provide […]

There are standard questions that an HOA board, property manager, or homeowner may have when reviewing an HOA master policy. We created this explanation of common HOA property insurance terms and association details to help your community better understand what may be covered, what may be excluded, and what information can help us prepare a better insurance quote. An HOA master policy is designed to help protect the buildings, common areas, and certain liability exposures that the association is responsible for. It may cover shared structures, common elements, and association-owned property, but it usually does not cover everything inside an owner’s unit. Every association is different. Coverage can depend on the governing documents, property type, […]