HOA Insurance 101
HOA Insurance 101
by sch43yt9824huilb

Questions to Ask About HOA Insurance If You’re A Condo Owner

When people buy a house, there’s a standard suite of insurances that they commonly know to buy, including homeowner’s insurance, flood or hurricane insurance, and others. But for urban dwellers who get into property ownership via condos, the landscape of critical insurance policies to carry looks different and may not be as well known. A key type of insurance policy that condo owners must understand is homeowner’s association (HOA) insurance.

Unfortunately, many people don’t even know what HOA insurance is, even after they buy and move into their new condo. Because it is less discussed, a quick baseline review of HOA insurance is necessary:

What is HOA Insurance?

HOA insurance is typically compulsory for condo owners, but it isn’t a type of policy that you would buy for yourself. Rather, HOA insurance will be purchased by the HOA in your building, which is where a notable portion of your HOA payment dues will typically go. So when you buy a condo, you typically are required to sign onto the terms of the building’s existing HOA, and that HOA will then mandate a portion of your fees to pay into the HOA policy, otherwise known as a master policy.

What does HOA Insurance cover?

HOA insurance policies are designed to provide that individual is held liable for any accidents that may occur in common areas of the condo building. While individual condo owners will be responsible for insurance coverage for liability to people and property within their condo’s walls, many condos have common areas and group amenities like gyms, pools, lounges, etc. HOA dues also maintain these areas, and because accidents can occur in them, the owners of condo units need to be insured against anything that may happen.

What else do condo owners need to know?

Just because the HOA insurance policy is baked into your existing condo fees does not mean that, as a condo owner, you don’t need additional coverage. HOA insurance won’t cover property damage or personal injury to anyone inside your condo unit, so condo insurance will be necessary to make sure you’re completely covered.

The key to any condo owner is recognizing and understanding what is and isn’t covered by the HOA policy. Some HOA policies will go above and beyond and include extra coverage that may allow you to reduce what your personal condo policy needs to protect. In contrast, others will do the bare minimum, and it may be necessary for you to add more than you initially thought to your condo insurance policy.

If you’re unsure what your HOA policy covers and what that means for the individual policy you buy, it is advisable to reach out to a trusted insurance provider and advisor. Schechner Lifson Corporation is happy to review your situation and recommend coverage custom made for your needs. Get in touch with us today, so we make sure all your needs are met.

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