HOA insurance is not coverage that most community associations think about investing in, but it should be. Homeowners’ associations are subject to numerous exposures that go beyond home invasions and vandalism. In addition to maintaining the community’s common areas, HOA directors are also responsible for budgeting, complying with state HOA laws, managing community funds and keeping the community safe as a whole. This can leave them open to mistakes, liabilities and disasters. For these reasons, the members of an association should work closely with an HOA insurance company to build a policy that will protect them from each possible exposure.
Natural disasters, burglars, vandals, lack of compliance and even internal theft are all very real risks that face homeowners’ associations. Coverages such as Directors and Officers liability coverage, cyber liability insurance, crime insurance and workers’ compensation can all serve to protect members of the association in the event that a legal claim is brought against them or a disaster strikes that the association is not monetarily equipped to deal with.
Running a homeowners’ association is a lot of work, and it comes with a lot of stress. However, when you work with an HOA insurance company, you can lessen your emotional burden by knowing that if disaster does strike, your community leaders are equipped to deal with it.