HOA’s Homeowners Associations Insurance
Every HOA’s Homeowner Association must have a comprehensive insurance program as a protection against personal injury and damage claims and casualty losses.Homeowner associations always face the risk of severe financial consequences from property loss by wind, fire, or such causes. There may be liability claims associated with the management of saunas,spas, swimming pools, playground equipment, parking areas, sponsored events, advertising, among others.
An HOA should have a professional insurance review done to determine the areas to be insured as well as the value of the property. Commercial General Liability Insurance is important for Homeowners’ Association to protect themselves from a range of liability exposures.
Commercial general liability insurance covers:
- Personal injury, including slander, libel, false arrest, character defamation, and invasion of privacy
- Property damage resulting from maintenance, operation, or even use of common areas
- Bodily injury resulting in actual physical loss, damage
- Advertising injury, including copyright infringement
The insurance policy pays legal defense fees, damages, and settlement cost.
What is right for one community may not be the same for another. Therefore, each community must consider the following coverages while deciding what is right for your Homeowners Association:
- Automobile insurance
- Property insurance
- Employee dishonesty insurance
- Commercial general liability insurance
- Comprehensive equipment coverage insurance
- Workers’ compensation insurance
- Umbrella liability insurance
A typical HOA’s Homeowners Associations Insurance will help you prevent potential losses.
Another important aspect of HOA coverage is Directors and Officers coverage. If you are on a board of directors for your HOA you need to be sure you are protected from possible litigation. You need to be sure you have this very important coverage which can also include discrimination coverage.