HOA Insurance — What You Don’t Know, Can Hurt You!
January 12, 2025
The purchase and annual renewal of the Master Insurance policy for most homeowner associations (HOAs) is probably the quickest and least understood decision an HOA board makes each year say Martin H. Laderman President of mem property management.
Since most of us know nothing about insurance, other than we pay for it and rarely use it, we can only hope our insurance broker is advising us correctly, but how can we be sure?
- Buy Your Policy from an HOA Insurance Expert The first thing to understand is that your HOA Master Insurance Policy should be written by an agent that has expertise in HOA insurance, states mem property management .
You probably take your car to a mechanic that specializes in your type of vehicle, and you Taylor Management NJ select a doctor who specializes in your personal medical condition. HOA Master Insurance Policy coverage should be viewed the same way — go to the expert that specializes in the issues that arise in homeowner associations, particularly condominiums and townhomes. IMPORTANT: Your insurance broker must review the CC&R for your association to understand the scope of the association’s responsibility. If the broker does not ask for the association’s governing documents, they are the wrong person to write the Master policy. - Annual Face To Face ReviewYou pay a lot of money for your HOA Master Insurance policy.Ask your broker to come to a board meeting, or better yet, the Annual Membership Meeting, to give a presentation on your association’s Master policy, and the types of issues the broker has seen over the past year, and what advice he/she has for your community.
- How to Find an HOA Insurance ExpertFull disclosure, I have been an active member of Community Association Institute (CAI) since 2004. I attend a lot of their classes, seminars, and conferences, including the College of Community Association lawyers (CCAL) annual conference. A couple of years ago I started attending the Community Insurance and Risk management Specialist (CIRMS) workshops, held in conjunction with the law seminar. I was impressed, and Wilkin Management stunned by the complexity of the HOA insurance issues.Knowing what I know now, I recommend that managers and boards seek out CIRMS certified insurance brokers, or at the very least, ask your broker what type of ongoing education they get (each year) to keep them up to date on issues that dominate the HOA industry.
- Keep Yourself Updated: CAI offers a variety of webinars.
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