Call Us (561) 994-0880 ☰ ˟
(561) 994-0880 info@parkassociates.com
Park & Associates
Client Portal  Request a Quote
  • HOME
  • ABOUT US
    • About Us
    • Employee Directory
    • Location Map
    • Privacy Policy
    • Testimonials
    • Giving BackImage of right arrow
      • Mission Trip to Haiti
  • CUSTOMER SERVICE
    • Client Portal
    • File a Claim
    • Request Declaration and Coverages
    • Request ID Card for Auto Policy
    • Request Proof of Insurance
  • MAKE A PAYMENT
  • RESOURCES
    • View our Blog
    • Insurance Glossary
    • Newsletter Archive
    • Refer a Friend
    • Request A Quote
    • Proof Of Insurance
  • CONTACT
    • Contact Us
    • Join Our Newsletter
    • Join Our TeamImage of right arrow
      • Join Our Team
Association Insurance Icon Business Insurance Commercial Real Estate Insurance Icon Association Insurance
Preschool Insurance Icon Preschool Insurance
Contractor Insurance Icon Contractor Insurance
Homeowners & Car Insurance Icon Automobile Insurance Flood & Umbrella Insurance Icon Homeowners Insurance 
Home > Blog > Homeowners Association Insurance Responsibilities - Part 2 of 3 Series
FRIDAY, AUGUST 21, 2020

Homeowners Association Insurance Responsibilities - Part 2 of 3 Series

“Why do I need to have insurance if my association already has insurance?” is one of the more common questions we hear those living within an association ask. There are a few answers to this question:

  1. The associations insurance generally covers common areas and commonly owned association property only – this does not include your individual home.
  2. Even if the associations insurance covers part of what you consider your home, they will not insure your personal property or your liability.
  3. You don’t want to rely on someone else to cover your exposure. The old saying, “trust but verify” comes to mind here. You can trust that your association has the proper insurance, but you verify that you’re properly covered by purchasing your own insurance.

“What does my association cover for insurance purposes?” is another common question we hear. In order to properly advise anyone asking that questions we need to review your associations bylaws and insurance documents. However, in the spirit of this blog, I can offer some general ideas about what should be covered by your homeowners associations insurance.

Generally speaking, your homeowners association is responsible for insuring common areas and association amenities (ex. guard house, tennis courts, sidewalks, etc.). In some cases, if your HOA is a townhome, villa, or attached structure, then your association may cover the exterior of your structure for insurance purposes. However, in this situation, your associations documents will dictate what property is specifically covered.

One important, but sometimes forgotten, coverage for most homeowners is Loss Assessment coverage. Under your homeowners or condo insurance policy, this covers you up to a specified dollar amount listed on your insurance policy declarations page. It helps insure common areas of properties that are collectively owned by members of a homeowners association, covering shared financial responsibilities that might arise in a claims process.

For example, a number of years ago my Papaw (that’s Indiana for Grandfather) received an assessment for quite a bit of money that was outside of the annual dues he received. His association had damage that needed to be fixed, and since the associations insurance did not cover the damage, they passed that cost on to the associations residents. If he had purchased Loss Assessment coverage, his out of pocket cost would have been dramatically reduced, if not zero. Unfortunately, that was not the case and he was on the hook for the complete amount.

These are just a number of things for you, the homeowner, to be aware of when it comes to making sure you’re most valuable asset is properly protected. An informed insurance consultant can help you navigate these and many other issues surrounding homeowners and association insurance. Contact your consultant today to ensure your peace of mind!

Looking for more content like this? Click here to sign up for our upcoming webinar! Sign up here

Written by Robbie Korth

If you have any questions, please feel free to contact Robbie Korth at rkorth@parkassociates.com

Posted 12:00 PM

Tags: homeowners association insurance responsibilities
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020
  • 2019
  • 2018
  • 2017

  • park and associates(28)
  • coverage(14)
  • business insurance(12)
  • insurance(11)
  • home insurance(9)
  • protection(7)
  • auto insurance(5)
  • car insurance(5)
  • commercial property insurance(3)
  • community association(2)
  • epli(2)
  • park & associates(2)
  • cyber liability insurance(2)
  • workers compensation insurance(2)
  • condo association insurance(2)
  • building ordinance & law coverage insurance association(2)
  • general liability insurance(2)
  • renters insurance(2)
  • homeowners association insurance responsibilities(2)
  • 2020 covid-19 insurance high premium cyber attacks and insurance(1)
  • insurance rates high; florida; homeowners rates(1)
  • how to calculate business income property insurance(1)
  • hurricane tips florida storm(1)
  • workers compensation(1)
  • property owners insurance coverage needed building ordinance or law(1)
  • personally identifiable information(1)
  • environmental impairment liability insurance pollution(1)
  • employeer liability(1)
  • valentines day(1)
  • texting(1)
  • reading(1)
  • crime coverage(1)
  • financial(1)
  • how insurance companies determine your premium for your home property(1)
  • holiday season hazards fire cooking christmas lights(1)
  • business income property insurance(1)
  • sole proprietor(1)
  • employee accident(1)
  • jewelry(1)
  • commercial auto insurance(1)
  • extortion ransomware association cyber liability insurance(1)
  • swimming pool(1)
  • insurance disclosure information risk exposures(1)
  • bop(1)
  • risks(1)
  • kitchen home fire and insurance coverage(1)
  • small business(1)
  • ho3 and h06 insurance coverage difference(1)
  • cyber insurance(1)
  • cyber attacks insurance(1)

View Mobile Version
Park & Associates
Quick Links
Home Our Products Customer Service Make A Payment Report a Claim
About Us Refer A Friend Our Carriers Blog Contact Us
Location
5255 N Federal Hwy.
Suite 200
Boca Raton, Fl 33487

Phone: (561) 994-0880
Fax: (561) 994-1740
Email Us

TrustedChoice
Facebook Twitter
Licensed In The Following States: Florida
Please Read Our Privacy Policy
Copyright © 2009-2019 Park & Associates, Inc.
All Rights Reserved.


Powered by Insurance Website Builder