Getting the Lowdown On Homeowners Association Insurance

Do you need homeowners association coverage?

By Meha Ahmad, InsuranceAgents.com Staff Writer 

Homeowners associations (HOA) are a non-profit legal entity for the purpose of maintaining neighborhood standards and to keep property value as high as possible. It is also the duty of the homeowners association to provide the option of insurance to its members. If you are part of a homeowners association, you may want to look into what coverage your homeowners association’s insurance offers. Keep in mind that you shouldn’t give up your individual homeowners insurance policy.  If you are ready to comparison shop, you should start by looking online for home insurance quotes.  Use our free, quick comparison form to compare rates from different providers in your area.

When it comes to homeowners association insurance, do not assume that the insurance the homeowners association offers is all the insurance you need. You are not covered on a homeowners association insurance policy more thoroughly than with your own individual policy. Keeping your individual policy is a must to maintain thorough and proper coverage.  

What is Covered By the Homeowners Association Insurance  

But homeowners association insurance usually covers:  

• Damage caused by wind, fire, rain, flood and lightning.
• Structure coverage (your roof, gutters, pool, etc.)
• General liability coverage
• Employee dishonesty
• Theft errors

Now that you know what should be covered by a homeowners association insurance policy, you will be able to take the next steps in finding out whether you need such a policy. 

Before Getting Insurance From Your Homeowners Association  

If you’re not sure whether or not you need insurance coverage from your homeowners association, here’s what you can do before you make the decision: 

1. Consult a homeowners association insurance agent. A homeowners insurance agent who specializes in homeowners association insurance would be your best bet. They will be able to explain what the policies cover, advise you on what kinds of coverage and limits to get, what an appropriate deductible is, etc.
2. Keep your individual policy. Never rid yourself of your individual homeowners policy. A homeowners association insurance policy will not cover everything you need covered, including your home’s content and personal belongings.  
3. Get homeowners insurance quotes. If you want to save money when paying for two different home insurances obtain several quotes. Just be sure to compare similar plans and pricing.

Time to Invest 

Your home is possibly your most valuable asset. In today’s economy, you can’t put any of your financial assets at risk. You need to make sure that your home is thoroughly covered under any likely, unfortunate events. Your individual homeowners insurance policy can do this, and you need to look into whether or not your homeowners association coverage is needed to do this as well.  

Published: Monday 6th July 2009