While nearly all homeowners associations have some type of policies on the books, many HOA boards have little or no idea what type of insurance they have or need. This can potentially lead to expensive litigation and claims that can cost your association thousands, and sometimes even millions of dollars.
One common subject that often causes confusion in a homeowners association is grasping the difference between the maintenance responsibilities of an association and the items that are covered by the association’s insurance policy. Often owners and even HOA board members may not understand the differences between these two subjects.
As a member of your homeowners association board (HOA) you may ask, "Do we need insurance?" The answer is a big yes! The more pertinent inquiry would be, "What type of insurance does our HOA need?" It is vital that your organization has the proper insurance coverage for all possible types of problems.