HOA Insurance

Hi All,

I'm looking into insurance for our HOA, and I was hoping some of you would be willing to let me know what kind of coverage you have, amounts of coverage, deductible, the carrier, and your experience with the carrier.

Do most have coverage for General Liability, Directors & Officers, Buildings/Misc, etc...

Nelson,

The following information regarding HOA insurance comes from a prominent HOA attorney in the Phoenix, AZ area. Hope this is of some help to you.

INSURANCE: Homeowner associations should be adequately insured to cover all aspects of HOA operations. Following are questions each Association should ask regarding its coverage to ensure they are properly covered:

 Does the policy cover the requirements set forth in the Association’s governing documents?
 Directors and Officers D&O Liability:
Does the policy cover the Association, the individual board members, the Architectural Committee and employees of the Association?
Does the policy cover the cost of defense for non-monetary claims? (For example, when the Association sues members for violation of the Declaration and the member countersues the Association, is the countersuit covered?
 Property Insurance:
Does the policy provide one-hundred percent (100%) guaranteed replacement cost?
Does the policy cover the increased cost of rebuilding a structure according to present codes?
 Fidelity Coverage:
Does the policy cover all personnel handling the Association’s money, including Board members, the property manager employed by the Association, and employees and the principal of the property management firm hired by the Association?
 Discrimination Claims:
Does the policy cover the defense costs of the Association for discrimination claims?
 Contract Claims:
Does the policy cover the defense costs of the Association’s contract claims?

Nelson,

We have a general liability policy with $2/4M coverage, $1K deductible. Included in that policy is a D&O rider, same limits. We also have a fidelity bond for the BOD (separate coverage) required by our docs: $30K coverage, $250 deductible.