WHAT TO KNOW ABOUT COMMERCIAL UMBRELLA - EXCESS INSURANCE FOR HOMEOWNERS ASSOCIATIONS

For Homeowners Associations, basic liability insurance coverage is not enough. You need a commercial umbrella policy to fully cover your association from risks.

Your homeowners association has taken the time to purchase a packaged HOA insurance policy. You’re compliant with the law and believe that you’ve done everything necessary to cover your needs. Getting additional protection may not be something that you’ve considered. However, in the course of your business, you may find that basic liability coverage is not enough. Excess liability insurance may be needed to fully cover your organization from risk.

Would your current limits provide coverage for a hefty judgment or settlement? If the answer is no, then it’s time to assess your needs and find out how an excess policy could help.

In addition to carrying out your duties and responsibilities as a member of a HOA board, it’s essential that you take the time to review your HOA insurance coverage limits.

Moran Insurance can help you to identify risk and determine whether your current policy offers enough protection.

Can your homeowners association afford to pay for legal fees and settlements that fall outside of your general liability policy? If your coverage limits are too low, you can work with Moran Insurance to find an affordable commercial umbrella policy that offers excess liability insurance.

What is Excess Liability Insurance for Homeowners Associations?

An excess liability policy is an additional insurance product that adds protection on top of your standard liability insurance. It’s a type of financial safety net that will increase your range of coverage to be used for legal fees, court judgments, and settlements agreed with third parties.

Also known as umbrella insurance, this type of policy will give you higher limits, and may have broader protection for a wide range of scenarios. The exact limits of the policy will be set by the insurer. Moran Insurance will work closely with you to understand your needs. We will then explore the Florida insurance market to find a policy that provides the best amount of coverage that is available within your budget.

Why is a Commercial Umbrella Policy Necessary for Homeowners Associations?

A commercial Umbrella Insurance Policy for HOA in Florida increases your range of coverage to be used in legal fees and settlements.

Every homeowners association faces some risk of being sued. When injuries or other events occur on your association property, third parties can sue you for damages. Some of these lawsuits may be frivolous in nature, but, regardless, it’s essential that you have the best protection possible. Whether or not the suit holds merit, you will still need to seek representation so that your legal interests are protected.

The United States Financial Education Foundation estimates that up to 40 million frivolous lawsuits are filed every year. Even when taking all of the right precautions and acting in good faith, your organization could be forced to defend itself in the legal system.

With an umbrella policy, you will be able to hire a lawyer, cover documentation and exploration fees, and reach a settlement or pay any judgment that arises. Legal costs could be crippling for a homeowners association. When you buy excess liability insurance, you will have peace of mind.

Protect Your Organization and The Interests of Every Director and Member

If you aren’t sure whether you need excess liability coverage, ask the following questions within your leadership team:

• Are we at risk of being sued by third parties that visit or work on your property?
• Does our association have significant cash reserves or an income stream to cover legal fees?
• Would our assets be at risk if a judgment was made against us?
• Is our current liability policy limited in scope?

If you can answer yes to any of the above, then it’s imperative that you talk to an insurance agent today.

This coverage may be offered to the association on a standalone basis or it may be offered as part of a larger Florida packaged insurance policy. An association will need to make the proper decisions from this standpoint. No two associations are exactly alike. That's why the assistance of an experienced insurance agent is essential. It is what keeps a company from finding themselves without necessary coverage during key moments.

The limits can reach into the millions, ensuring you receive the protection required. Potentially ruinous claims happen more often than most companies are aware of. These claims have the potential to destroy unprotected associations, leaving them penniless. When an association is the target of a lawsuit, their most important assets are left hanging in the balance.

Of course, this is something that any self-respecting association would like to avoid. That's where the value of quotes comes into play. Costs that are associated with certain claims will often outstrip the insurance resources that an association has available to them. When this happens, the company is typically left with very little recourse.

To protect your homeowner’s association with an umbrella policy and excess liability insurance in Florida, find affordable quotes with Moran Insurance today

Medical bills, legal fees, and damages that are related to daily expenses are all covered when an association takes the time to seek out umbrella and excess insurance quotes. Any association that is leaving themselves open to paying out of pocket for the aforementioned expenses is placing themselves in a very difficult position over the long haul. There is simply no way for a company to successfully predict the future and no association should ever try to do so.

If you’re ready to get the best protection possible with a commercial umbrella policy, the team at Moran Insurance is ready to help. We’ll find an affordable policy that meets your needs and covers all expected risk. Talk to us today to discuss your situation and experience the difference that comes from working with a top-rated insurance agent in Florida.

Resources and References:

• Frivolous
• Responsibilities