Homeowners Association (HOA) insurance protects the assets and interests of an HOA, as well as the property it manages. General liability insurance is the most essential type of coverage. It protects the HOA from claims of bodily injury or property damage that occur on common areas, such as pools, parks, and clubhouses. If someone gets injured while using these facilities, general liability insurance covers legal fees, medical costs, and settlements.
Property insurance is equally important for an HOA. This coverage protects the physical structures that the association owns, such as community buildings, fences, and shared amenities. Property insurance covers damage from risks like fire, vandalism, or severe weather events such as hurricanes or tornadoes. In areas prone to natural disasters, this coverage helps prevent significant financial losses by ensuring the HOA can repair or replace damaged property.
Additionally, HOA boards often choose directors and officers (D&O) insurance. This policy protects individuals who make decisions for the association from personal liability. If a resident or third party files a lawsuit against an HOA board member for alleged mismanagement or breach of fiduciary duty, D&O insurance covers legal costs and damages. This policy is vital for attracting and retaining dedicated board members, as it ensures they won’t face personal financial risk for their decisions.
If you’re on the board of a homeowners association (HOA) in Florida—or just live in one—you’ve probably asked yourself this question: “What insurance are we actually supposed to have?” It’s a fair question. Insurance laws and policies for HOAs are…
Florida is one of the fastest-growing states in the U.S. From new coastal developments in Naples to sprawling master-planned communities outside Orlando and Tampa, neighborhoods governed by homeowners associations (HOAs) are popping up everywhere. HOAs bring structure, maintain aesthetic standards,…
