Insurance is just one of those things: you hate to pay for it when you don’t need it, but you’re incredibly grateful to have it when you do.
Homeowners associations generally have quite a bit of insurance, and many of them have umbrella policies that cover them for just about any eventuality. This is extremely important, since a very large number of people can all be counting on the same insurance.
Generally speaking, HOAs carry property insurance. This covers everything from the main structure to clubhouses, gyms, pool houses, garages, and so forth. It’s especially useful in areas prone to extreme weather.
They also carry liability insurance, which protects the association if anyone should get hurt while on the property. Of course, well-maintained properties are pretty safe anyway, but it’s always good to be prepared in case someone slips on ice or a child is hurt playing on the swings in the communal playground.
But did you know there’s also something called Employee Dishonesty Insurance? Many HOAs carry it, and it protects the association against theft by contractors, employees, and vendors. You don’t like to think that you need protection like that, but once again, it’s important to have it if and when you need it.
Of course, like anything, it’s possible to overdo insurance. There’s no point in paying for insurance that the HOA will probably never use. The right amount of insurance – and the right type of insurance – should be enough to keep everyone safe and happy.