The goal of an HOA is to ensure members and their properties are safe, which is why you need comprehensive insurance coverage. You will notice that there are so many policies available, so it can be overwhelming to make a decision. Here is a breakdown of the most essential types of HOA insurance coverage.
D&O Insurance
Did you know that individuals can also be sued when it comes to an HOA? When you take up this policy, you protect the managers, directors, and all the officers affiliated with the HOA. This way, the affected members will not be responsible for their own defense. The policy covers their legal fees and handles any financial losses.
Property Insurance
Experts from claims management services will recommend you also cover the HOA property, which entails anything under your ownership. This is one of the most common types of insurance coverage for HOAs that protects common areas and properties. Without it, you will have to pay for damages and injuries out of pocket. It also comes in handy to cover unexpected issues like demolitions, which can be costly.
Liability Insurance
Slips and accidents happen, and the HOA may be under fire when third parties decide to sue. Having a liability cover will protect against such instances where there is bodily harm or damage to property. The third parties included in this cover include anyone entering the property, from residents and visitors to employees and vendors.
Discrimination Coverage
Say a homeowner faces foreclosure on their property for failing to make payments. They will do anything to avoid that, including suing the association and citing discrimination. That is the last thing you want to happen, hence the need for discrimination coverage. This is common when it involves minority groups and protected individuals, such as people living with disabilities or the elderly.
Employee Dishonesty Coverage
Among the most crucial types of insurance for homeowners associations is dishonesty coverage. Associations lose a lot of money due to fraud and other issues caused by poor behavior by the staff. Thanks to this policy, the HOA is safe when it comes to dishonest members and employees, including vendors and contractors. It helps cover financial loss and damages caused by the staff.
Talk to the Professionals
You know how crucial insurance coverage is for the finances of your association. Contact Avid Contractors, a reliable community association contractor in Georgia, to help you find the best policy and guide you through how it the various types of insurance can work for your HOA.
