HOA As Co Insured

Our covenants require home owners to list the HOA as co insured. We have a resident that refused to include us on his Insurance as a co-insure. I would like to have your suggestions as how to explain this to the homeowner, it is for his protection. Your thoughts would be appreciated.
T.J. Weaks
President Of HOA
Platte City, Missouri

Very common in construction for the general or HO to be listed as co-insured by the various subs

Co insured aka additional insured.
I suspect that this is more common in condominiums then within HOAs.

We don't have such a requirement so I'm not real sure what the advantages/disadvantages would be.
I was able to locate the following:

Certificates of Insurance”
and “Additional Insured” Coverage: Maximize Value and Avoid Pitfalls a 2008 article

HOA's as additional Insureds? from insurance journal forums

Homeowners Insurance/Insurable Interest a 2007 opinion on this topic from the NY Insurance Department

New Town removes unusual homeowner insurance requirement 2014 article in St. Louis Dispatch

This issue came up in my former HOA. As I recall our insurance broker said that the HOA did not have an insurable interest in the individual homes, therefore insurance companies would not allow the HOA to be named as co-insured on the homeowners' policy. This was in Virginia. I don't know if it applies elsewhere.

Co-Payee and Co-Insurer are two different animals.

Additional Insured (aka co-insured)

A person or organization not automatically included as an insured under an insurance policy who is included or added as an insured under the policy at the request of the named insured. A named insured's impetus for providing additional insured status to others may be a desire to protect the other party because of a close relationship with that party (e.g., wanting to protect church members performing services for the insured church) or to comply with a contractual agreement requiring the named insured to do so (e.g., project owners, customers, or owners of property leased by the named insured). In liability insurance, additional insured status is commonly used in conjunction with an indemnity agreement between the named insured (the indemnitor) and the party requesting additional insured status (the indemnitee). Having the rights of an insured under its indemnitor's commercial general liability (CGL) policy is viewed by most indemnitees as a way of backing up the promise of indemnification. If the indemnity agreement proves unenforceable for some reason, the indemnitee may still be able to obtain coverage for its liability by making a claim directly as an additional insured under the indemnitor's CGL policy. In property insurance, additional insured status is most often used in conjunction with a premises lease agreement between the named insured as the lessee and the owner of the leased building, in which the insured tenant is required to purchase insurance on the leased building and name the building owner as an additional insured on the insurance policy with respect to the leased building. See also Additional insured endorsement; Additional named insured; Contractual risk transfer; Loss payee; Named insured.

loss payee (aka co-payee)

person or entity that is entitled to all or part of the insurance proceeds in connection with the covered property in which it has an interest. Often those asking to be named as loss payees have leased some type of equipment to the insured—a photocopy machine, for example. Several different loss payee clauses address different insurable interest situations. A loss payee is also common in a personal auto policy (PAP) in which the automobile is financed. The lending institution would be listed as the loss payee on the declarations page. See also Additional insured; Lenders loss payable endorsement; Mortgage (mortgagee) clause; Loss payable clause.

For more insurance definitions, see: Insurance and Risk Management Terms