Individual units in a homeowners association are the responsibility of their owners, but common areas are the duty of the association. For these associations, that’s why having insurance is vital to avoid expensive payments for damages and liabilities. Not only does homeowners association (HOA) insurance protect the investments of its residents, but it also covers the interest of the co-op shareholders. Without it, members of the association may be at risk. Muller Insurance explores HOA coverage here.
What Coverage an HOA Needs
Not all HOAs look the same, so insurance needs can vary. However, there are general options to consider, including:
An HOA needs protection in case of natural disasters, fire, smoke, water damage, vandalism, and theft. For associations, this coverage could include equipment such as computers and maintenance machinery. Most policies for HOAs will cover the structural aspects of the building, such as hallways, elevators, and stairways, but not all will provide this protection.
Muller Insurance covers this shared infrastructure by offering policies that ensure your building’s walls, foundations, and utilities are protected. To go a step further, we also protect cooperatively owned property with this policy. In other words, we cover furniture, artwork, landscaping, and other property that co-op shareholders provide for the building if any damages or losses occur.
Liability coverage is necessary for all properties but is particularly important for HOAs. The common areas of these sites can all experience higher volumes of accidents. If anyone on the grounds of the association is injured or suffers a loss, liability insurance pays for medical expenses and repair costs. At Muller Insurance, we offer coverage for major common areas, including:
- Garages and carports
- Recreational centers
- Communal patios and balconies
- On-site workout facilities
- Hoy tubs and pools
- And more.
Property insurance will protect against thieves breaking into homes, but it is also important to think about theft from within the association. Fidelity insurance covers misuse or theft of the property by staff, contractors who come in to conduct repairs, association members, or even representatives from companies that manage the property.
Directors & Officers Liability Insurance
The normal responsibilities of an HOA’s board members may create situations where they need to defend themselves in court, so they need special protection. For example, if an owner refuses to pay association dues, the board might have to take possession of the unit. As a response, directors and officers (D&O) liability insurance safeguards the actions of board members and officers by paying for damages they face if owners take them to court.
Homeowners Association Coverage from Muller Insurance
Homeowner’s association insurance is crucial to protect the interests and investments of the owners and co-op shareholders. At Muller Insurance, we work with over 20 insurance companies to find the HOA insurance policy that works best for the specific needs of your buildings. Contact us today to request a quote and discover how we serve HOAs in New Jersey, New York, Connecticut, Pennsylvania, Nevada, and other states.