4 HOA Insurance Policy Shopping Tips

4 HOA Insurance Policy Shopping Tips

Are you experiencing insurance overwhelm? If you are not familiar with insurance, it can seem like a bewildering world full of terms you do not understand. However, getting homeowners association insurance does not have to be as intimidating as you may think. Learn more about homeowners association insurance policies and how to get them below.

4 HOA Insurance Policy Shopping Tips

What is an HOA Insurance Policy?

An HOA insurance policy covers the community association in the event of a problem. If you are trying to insure a homeowners association or community association, there are a lot of different things to consider. Some of the inclusions for this type of policy are:

• Property insurance, which takes a look at the value of the property and should cover the full cost of replacement
• Coverage for increased cost of construction, which provides coverage for things like building code upgrades.
• Third-party bodily injury, coverage in case someone gets injured on your property
• Third-party property damage in case your property damages someone else’s property.
• D&O liability, liability insurance that covers directors and officers while they serve on a board of directors or as an officer of a business
• Workers compensation, coverage for any employees injured on the job
• Flood insurance, insurance to cover the cost of repairs after flooding

How Do You Get HOA Insurance?

You get HOA insurance in a way similar to that of getting insurance for health or a business. However, with homeowners association insurance, you need to be sure you are going with an insurance company that is knowledgeable about this type of insurance and has the appropriate coverage for this specific situation. The basics steps to getting insurance include:

1. Do Some Research– Your first step will be to do some research to ensure you understand the essential types of coverage and are clear about the type of insurance coverage that you state may require as well as any additional coverage you may want. Insuring a homeowners association means you will want property insurance and should consider other insurance coverages like increased cost of construction, property damage, bodily injury, and D&O liability insurance. Additionally, if you are employing a lot of people through your homeowners association, you may also want to look into coverages like workers compensation, employment benefits, and employment practices liability.
2. Think About What You Need– We already listed some of the different available insurance coverages, and as the above step discusses, you should do some research on each type. Then, you will want to take some time to think about whether or not you need these different types of coverage. Think about the HOA and your plans for the future. Will you be expanding? Will the look and function of the HOA be changing? Are there any things you need to account for in the future? Consider all these possibilities, and don’t be afraid to reach out to an expert for guidance if you need it.
3. Determine Your Budget– The next step is to determine your budget. When looking at a budget, it can be tempting to spend the lowest possible amount for insurance. However, that option could end up costing you more in the long run. Because insurance is protection for when something goes wrong with a home or business, it is usually worth it to have the extra protection, even if it is at a slightly higher cost.
4. Get Multiple Quotes– The final step to getting insurance is to get a few different quotes from various insurance companies. You should compare the cost of each quote as well as how helpful and knowledgeable the company seemed. Multiple quotes will help you make sure that you get a good deal on your HOA insurance policy.

Getting homeowners association insurance does not have to be intimidating. If you follow the steps listed above, you will be able to get the coverage your HOA needs to be successful. At Moran Insurance, we are happy to help you with any questions you may have related to HOA insurance, business insurance, and personal homeowners insurance. We have qualified professionals that can answer your questions and help you build the insurance policy that makes the most sense for your needs. Click here to learn more about how Moran Financial Solutions can help you.