Homeowners’ associations are designed to serve and protect the community, and as a result, they are subject to not just the same exposures that homeowners are subject to, but also to additional exposures that most house owners wouldn’t think twice about. Resident safety, finances, compliance with state and local laws and maintenance of common areas are just a few responsibilities that community associations have to think about that homeowners do not. If you are part of a homeowners’ association, it wouldn’t hurt to look into enrolling in an HOA liability program to protect yourself, your directors and your community from liability issues.
Though every HOA program is different and therefore requires different insurance needs, there are some coverages that all HOAs should consider investing in. For instance, most HOA claims are made against directors and board members for failing to serve the communities best interests, which is why Directors and Officers liability coverage should be a priority. Crime insurance and cyber liability coverage are two other protections that HOAs may benefit from, as HOAs are subject to theft, cyber threats, dishonesty, fraud and forgery just like regular businesses.
If you are a member of an HOA and if you want to ensure that your organization is protected against common exposures, look into joining an HOA liability program. It may serve to benefit not just the entire organization, but your community as well.