Just like individual homeowners, each HOA requires a comprehensive insurance policy. Insurance will provide coverage and protection for liability and property maintenance within the neighborhood or condominium. You likely already know that you need insurance, but you might not understand exactly what should be included in your coverage. The following items will provide clarification. Your homeowners’ association should buy insurance coverage for:
  • General Liability Property Insurance: A policy will provide protection for buildings but not their contents.
  • Regular Liability Insurance: Including this in your insurance policy will provide protection for injuries to visitors within a neighborhood or condo.
  • Social Host Liability Coverage: Condos with clubhouses and other social spaces that will host guests or events will need liability coverage.
  • Directors and Officers Coverage: This type of coverage protects board and association members from liability.
  • Workers’ Compensation: To provide coverage for injuries and losses suffered by employees.
  • Employee Dishonesty Bond: To provide coverage for theft and loss caused by employee crime or dishonesty.
  • Fidelity Bond Insurance: To protect against financial fraud within the organization.
The more comprehensive the policy, the better your organization will fare when the unexpected happens.