3. What does HOA
insurance cover?
A general HOA master policy will include two main types of coverage:
• Property damage - HOA insurance is designed to offset the cost of
common area repairs after they've been damaged. However, check
your policy for any exclusions related to weather or natural disasters.
That type of damage may not be covered.
• Liability expenses - An HOA insurance policy should also protect
association members from liability when a person is injured in a
common area on the property. Even if the accident wasn't fully
the HOA's fault, the association may have shared liability for legal
damages, which HOA insurance may cover.
If you live in a condominium, it can be a little more difficult to distinguish
between common areas and an individual's property because many
elements are often shared. In these cases, "bare walls" condo association
insurance will also cover the building's structure, including the walls,
insulation, plumbing, and wiring. "All-in" coverage adds more protection
for installed features in the building, like light fixtures and entryways.
