I hear people say this all the time, "but my HOA has insurance!" 

Before deciding on coverage amounts for your home or condo insurance policy, check your HOA’s “master policy”. 

When you belong to a homeowners association (HOA), you typically pay for two types of property insurance: home or condo insurance and homeowners association insurance or HOA insurance.

When your lender will require you get home or condo insurance as a condition of taking out a mortgage, your HOA will require that you pay dues as a condition of your membership for living under their guidance rules. A portion of membership dues pays for the community’s HOA insurance. This typically covers physical damage to shared spaces and general liability if a guest gets hurt in a communal area. 

Once you know what is covered by your HOA policy, you can then determine what you need. It is possible you are overinsured and paying too much. 

What are the communal areas that are typically covered in the master policy? 

These are shared spaces like the main area of a condo building, a swimming pool, gym, and tennis courts.  As members, not only do you pay for maintenance and renovations of common areas, you are also paying for a collective insurance policy to insure against property loss. 

Some master policies provide a certain level of coverage to individual condominiums as well as building common areas, while others cover the bare minimum. In either case you do need your own condo insurance policy to compliment your master policy. 

Let our experts at All Access Insurance guide you toward the best HOA insurance plan for you, your family and your home. 

Keeping  you protected.

Rick

All Access Insurance in Littleton, CO,  who represents multiple insurance companies as a “Broker” and provides products for auto, home,  commercial, workers compensation, and much more! Call us today for a free quote at (303) 932-1700.