HOA Insurance Policy Details Revealed!

Author : Twin Sure | Published On : 10 Jan 2022

If you are running a business, you will agree that business insurance in CA is a must! A homeowners association known as HOA insurance is also like a business, and hence HOA insurance is essential. Homeowners elect board members to look into the community operations, and the HOA board handles day-to-day operations, repairs, maintenance of the shared assets. Legally also it is crucial to have an HOA insurance policy.

The most common question is, why do you need an HOA Insurance Policy?

Why do you think people running a business need to have business insurance in CA? Well, the reason is simple to protect and safeguard yourself and your business from any upcoming sudden calamities so that you can survive further. Being like a business, running an HOA also requires the protection of an HOA insurance coverage that protects everyone in the community.

If you are an HOA board member, you should also know that while doing the overall transactions of the HOA, you could be liable for costs incurred when accidents or unfortunate events happen in a communal area, and HOA insurance is then your savior! It provides financial security in case anything sad happens on communal property.

Let's understand the various types of HOA Insurance Coverage.

HOA Insurance Type #1: Master Policy

A master insurance policy under HOA insurance includes property and general liability insurance. Property insurance covers damages to shared spaces, and general liability insurance covers any injuries your guest may sustain within the community's shared spaces.

HOA Insurance Type #2: Comprehensive General Liability

Comprehensive general liability insurance covers instances and scenarios that are not within the scope of the master policy.

HOA Insurance Type #3: Comprehensive Equipment Coverage

The comprehensive equipment covered under the HOA insurance covers damaged equipment. Just like business insurance in CA covers loss of property and equipment inside it and is crucial, so is HOA insurance. Through this type of HOA insurance, you get your property damage covered that is outside the scope of the master policy.

HOA Insurance Type #4: Catastrophe Insurance

Are you living in a place that is prone to frequent natural disasters? Well, then Catastrophe insurance type of HOA insurance in such cases. You stay protected from hurricanes, earthquakes, typhoons, and so on!

HOA Insurance Type #5: Discrimination Coverage

You must be aware that in every HOA, there will always be some homeowners that are evicted from the community. In such instances, the evicted homeowner may make discrimination claims against the HOA, and this insurance type of HOA insurance will give protection and cover costs incurred.

HOA Insurance Type #6: Workers Compensation Coverage

If your community is large, it implies that there will be more injuries due to more shared spaces and more people employed. Adding this type of HOA insurance policy will protect the HOA board from injury claims and other related costs.

Contact the best insurance agent in CA for all your needs, be it HOA insurance or business insurance in CA. Get started here.