We continue our discussion of insurance and how it protects your property and this month, the spotlight is on HOAs and condo associations. If you rent out a home in an HOA, your monthly or annual fees will likely contribute to the HOA insurance policy that covers the entire community.
What does that mean for you?
Is Association Insurance Even Necessary?
When you buy a condo or a home in an HOA to rent out, you have to buy insurance for your individual property. So, many owners wonder why there’s additional insurance required for the association.
Here’s what you need to know:
- Association insurance works together with your own homeowners or condo insurance to provide complete coverage.
- HOAs and condo associations work to maintain and protect public spaces and common areas. There could be liability issues in those spaces as well as costs to repair or replace them. The insurance will protect homeowners in the association against those costs and liabilities.
- While associations often require extra coverage, it’s rolled into your association dues and your own policy likely provides all the coverage you need for your specific home or condo.
What’s Covered? What Isn’t Covered?
It’s often called a master policy, and your association coverage protects you and other homeowners from liability should someone get injured in your common community space. This type of insurance also covers damage done to common areas.