ACCOUNT ACCESS
Being a condo owner or director presents its own set of unique challenges and risks. This type of business hovers between the realms of apartments and that of the buying and selling of a strictly real estate standpoint. You need an insurance package that is custom tailored to your homeowners association’s needs.
Just like any property owner, you need coverage to protect against damage to your buildings, structures and housing systems. Many HOAs carry what’s known as a “master policy.” This policy typically covers the parts of residential structures shared by all homeowners, and should state exactly which areas the HOA insures.
While homeowners and renters alike are exposed to certain liabilities, HOAs are exposed to a unique set of risks. Some states require that HOAs have insurance that pays the costs of lawsuits filed against homeowners by people who are injured or killed on the property. For example, suppose the elevator in your building malfunctions and injures someone. The injured person can file suit and win a substantial court judgment. If your HOA insurance lacks this coverage, your homeowners might be responsible.
You also have to consider the liability exposure concerning the condo association or HOA’s employees. Key HOA employees are responsible for making important decisions about how to manage the property. When an HOA employee fails to do something or acts in a way that causes damage to someone, the HOA may be sued. In some cases, the employee can be sued as well. To avoid paying the costly legal fees and settlements, most homeowner associations take out an insurance policy that protects employees from having to pay lawsuit settlements when they make mistakes. Usually, residents of the HOA pay for all of these insurance policies as part of their fees.
Be sure to check with your state and local housing authority before purchasing any HOA insurance. Many areas require you to carry specific kinds of insurance. You can also find answers with the knowledgeable, independent agents at Sutton Insurance, who are always available for questions. These experienced agents can also find you a number of HOA insurance quotes from a variety of providers, ensuring the policy you choose will offer the best coverage at the most affordable rates. Contact us to find out how you can obtain the best HOA insurance available.