Homeowners associations (HOAs) are responsible for the maintenance and upkeep of common areas in a community. This can include things like roads, sidewalks, pools, and clubhouses. HOAs also typically have insurance policies to protect themselves from financial losses due to accidents, lawsuits, settlements and other unforeseen events. Choosing the right HOA insurance provider is an important decision. The right provider will offer the coverage you need at a price that’s fair. This blog post will discuss the different factors to consider when choosing an HOA insurance provider, as well as some of the most important coverages to look for.

Understanding HOA Insurance

HOA insurance, commonly known as a master policy, furnishes protection against liability and property damage expenses that the HOA might otherwise need to cover using its association funds.

In the case of neighborhood HOAs, a standard master policy typically encompasses shared assets and amenities overseen by the HOA. This encompasses features like community pools, parks, playgrounds, ponds, gardens, clubhouses, and fitness facilities.

For condo HOAs, a typical master policy extends coverage to everything beyond your individual condo unit. This includes the building itself, comprising exterior walls and the roof, as well as communal areas such as stairwells, hallways, elevators, and the lobby.

Types of HOA Insurance Coverage

HOA insurance coverage encompasses various facets, each tailored to address different potential risks. Some of the primary coverage types include:

  • Property Coverage: This type of coverage extends to shared areas and structures within the community. It includes protection against damages caused by perils like fire, vandalism, and weather events.
  • Liability Coverage: Liability insurance is essential in case accidents or injuries occur within the shared spaces of the community. It shields the association from legal claims that could arise from such incidents.
  • Directors And Officers Coverage: This coverage, also known as D&O Insurance, protects board members from potential legal actions brought against them for decisions made in their official roles.

The Responsibility Between The Property Owners And The Association

The division of responsibilities between property owners and the association depends on the structure of the association. In condominiums, for instance, the association typically holds more responsibility for the shared spaces and structures. The master policy of insurance covers these common areas, providing a layer of protection for all members of the community.

Individual unit owners are usually responsible for insuring their personal units, including fixtures, appliances, and personal belongings. While the division of responsibility between the HOA and the unit owners is universally set forth in the governing documents, the specific coverage desired may vary from one homeowner to another, based on personal preferences and the level of protection desired.

The Insurance That Individual Unit owners Are Typically Responsible For

In addition to the master policy, individual unit owners may also need to purchase their own insurance. Depending on the association type, this could include homeowners insurance, flood insurance, and earthquake insurance. Homeowners insurance will typically cover the unit owner’s personal property and liability for accidents that occur in their unit. Flood insurance is required if the unit is located in a flood-prone area but is nonetheless required in many instances beyond the required areas. Earthquake insurance is optional, but it may be a good idea if the unit is located in an earthquake-prone area.

Identifying The Insurance Needs of Your HOA

The specific insurance needs of an HOA will vary depending on a number of factors, including:

  • The size and type of community
  • The location of the community
  • The amenities that are included in the community
  • The financial resources of the HOA

Conducting A Risk Assessment

The first step in identifying the insurance needs of your HOA is to conduct a risk assessment. This involves identifying the potential risks that your HOA faces, such as natural disasters, accidents and other legal disputes.

Common Risks Faced By HOAs

Some of the most common risks faced by HOAs include:

  • Natural Disasters: HOAs that are located in areas that are prone to natural disasters, such as hurricanes, floods, or earthquakes, will need to have adequate insurance coverage to protect themselves from the financial losses that can result from these events.
  • Accidents: HOAs that have common areas, such as pools, playgrounds, or clubhouses, are at risk of accidents. These accidents can result in injuries to homeowners, guests, or vendors.
  • Legal Disputes: HOAs can be involved in legal disputes with homeowners, who may argue claims such as mismanagement. These disputes can be costly, so it is important for HOAs to have adequate insurance coverage.

How Insurance Can Mitigate Risks

Insurance can help to mitigate the risks that HOAs face by providing financial protection in the event of a loss. For example, if a natural disaster damages the HOA’s property, insurance can help to pay for the repairs. If an accident occurs on the HOA’s property, insurance can help to pay for the medical expenses of the injured parties. And if the HOA is involved in a legal dispute, insurance can help to pay for the legal fees.

Evaluating Insurance Provider Options

When evaluating insurance provider options, there are a few key factors to consider:

  • Financial Stability: Make sure the provider is financially stable and has a good reputation.
  • Experience: Choose a provider that has experience in insuring HOAs.
  • Customizable Coverage: Make sure the provider offers customizable coverage options to meet the specific needs of your HOA.
  • Customer Service: Choose a provider with good customer service and a reputation for being responsive to claims.

Assessing Customer Service And Support

Customer service is an important factor to consider when choosing an insurance provider. Make sure the provider has a good reputation for being responsive to claims and providing excellent customer service.


By understanding the different factors that influence the insurance needs of an HOA, you can choose the right policy for your association’s needs. It is also important to evaluate insurance provider options carefully and choose a provider that offers the coverage you need at a competitive price. If you are looking for the right HOA insurance provider, Notable Risk has robust access to national and specialist carriers to help find a great match.  For any information regarding the HOA insurance, get in touch with Notable Risk today! 

DISCLAIMER: The information provided in this blog post is intended for general educational purposes only and should not be relied upon by any individual or party for any specific purpose. Additionally, the information contained herein is not regularly updated. Neither this blog post nor any of its content (express or implied) should be considered as legal, financial, health, or other professional advice. It is essential to consult with your own advisors regarding any matters discussed in this blog post or elsewhere. Notable Risk LLC and its owners, members, managers, directors, officers, partners, consultants and similar entities do not make any representation or warranty regarding the accuracy or completeness of the information presented in this blog post or elsewhere.