When Do I Need It?
If you’re on the board of a homeowners association (HOA) or Condominium Association, you know the challenges of maintaining your community’s high standards — especially when the unexpected happens.
The goal of a homeowners association is to ensure that the community it governs is safe and secure. That’s why it’s important for HOAs to purchase to make sure that they are properly insured.
We have insurance options for your condominium, townhouse or planned community! On average we are saving up to 30% in insurance cost to the clients that are switching to us.
The Benefits of Getting Homeowners and Condo Associations’ Insurance
An HOA insurance policy, sometimes referred to as a master policy, covers you from liability should someone get injured in your common community space. For example, if you live in a condominium, the association policy will cover damage to the exterior walls of your home. There are caveats to what you’ll be covered for, though, that are important to understand.
What we offer:
- Premises liability exposure comes from use of the communal areas as the association is responsible for all maintenance and upkeep. All buildings should meet life safety codes regarding smoke and fire detection, fire extinguishers, and carbon monoxide detectors. To prevent slips and falls, all premises must be well maintained.
- Directors and officers exposure is from actions and decisions made by the elected officers of the association. The exposure can be minimal when all responsibilities are shifted to an outside management firm. If the association operates without outside assistance, the association and its individual officers can be held liable for adverse actions such as discriminatory practices, failing to maintain the property in a responsible manner, or mismanagement of shared escrow funds. Policies and procedures should be published and consistently followed.
- Workers compensation exposure is nonexistent if the association contracts all services to an outside management firm. If there are employees, office workers may develop repetitive motion injuries such as carpal tunnel syndrome. Maintenance workers can experience cuts, burns, back sprains from lifting, and exposure to machinery used for lawn maintenance and other repairs.
- Property exposure consists of the buildings, grounds, swimming pools, parking areas, and other property jointly owned by the association’s members. The bylaws of the association will specify what is owned by the association and how it must be insured. Ignition sources include electrical wiring, heating and air conditioning systems, and cooking equipment within residential units. There should be hard-wired smoke or fire alarms in all units and common areas. Personal property is limited to the office and furnishings in the community building.
- Crime exposure comes from employee dishonesty in the handling of the escrowed funds to be used for maintenance and repair. Employee dishonesty is controlled through background screening, disciplined controls, and division of duties.
- Inland marine exposure comes from accounts receivable for association fees and assessments due, computers, and valuable papers and records for association and owners’ information. Duplicates of all records should be made and kept off premises for easy replication in the event of a loss. Lawn equipment may be considered contractors’ equipment, but is usually included as building property.
- Business auto exposure is generally limited to hired and non-owned for employees running errands. If a maintenance vehicle is owned by the association, all drivers must have licenses appropriate for the vehicles driven and acceptable MVRs. All vehicles must be maintained with records kept in a central location.
Secure your Life’s Hard Work
…with a commercial insurance brokerage provider who understands and will advocate for your needs. Ready to get started? Do not hesitate to send us your questions here for your inquiries about our company and brokerage services. You may also speak with our insurance consultant here for an expert take on the commercial insurance you need.