If someone is hurt or even killed on community property, liability coverage can protect community residents from catastrophic financial losses. However, homeowners are charged with purchasing their own condo insurance or homeowners insurance coverage that protects the interior of their home and everything they own.Īlmost more important than anything else is the liability covered included in HOA insurance policies. In the case of condominium communities, damage to the outside structure of buildings is included. What Does an HOA Master Policy Cover?Īn HOA Master Policy provides coverage for common areas in your neighborhood, as well as liability coverage. This means that individual homeowners and condo owners need to verify their HOA has sufficient insurance coverage, but they don't need to purchase a policy themselves. Generally speaking, however, HOA insurance is paid for out of the HOA dues you pay to your This means that HOA insurance is purchased in addition to other policies you have, such as your homeowners insurance or condo insurance policy. HOA Insurance works in conjunction with other insurance you have purchased to protect your building and your personal property. HOA insurance is a type of commercial property insurance that provides coverage for components of your property not covered by other insurance, such as the exterior of your condo building, your community park, a community pool or tennis courts. These are just some of the responsibilities HOAs typically take on, although there may be others depending on the specifics of the community. Repairing and upgrading shared community amenities.Paying utility and water bills for community buildings.Setting the terms for special assessments.Budgeting community funds and allocating money toward appropriate expenses.Setting up maintenance work for shared community amenities, such as pools and parks.Other jobs HOAs take on can vary buy may include the following: Homeowners associations exist to make sure neighborhoods are running smoothly, and that any existing rules are being followed and enforced. Some HOAs are also overseen by a third party management company who takes care of some of the regular activities of the HOA, such as collecting HOA dues and distributing community funds toward bills and other expenses. While HOAs can operate in many different ways, homeowners associations are typically made up of non-paid boards of local residents. If you live in a neighborhood with other homes, there's a good chance your community has a homeowners association, or an HOA. HOA insurance can also pay to repair damage caused to community property, even when the damage was caused by unknown forces or a party that doesn't reside in your neighborhood. This type of insurance is not as popular as homeowners insurance, yet it can come in handy - and potentially even save your finances - if an individual is injured in your neighborhood's common community space. While a homeowners insurance policy intends to protect the building you live in and its contents, including your personal possessions, HOA insurance can provide additional protection for the common areas owned collectively by other homes or condominiums in your community. Liability can be a major concern for homeowners as well, and sometimes even property you don't personally own can leave you vulnerable. Owning property can leave you dealing with any number of perils, and potential problems you face may not be the result of a fire, a theft, or a natural disaster.
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