Insurance for HOAs and property associations
The board is responsible for the association’s insurance, and most boards have never seen the policies. Knowing what you have and where it is kept is the first step.
What to watch for
Nobody has the policy. Almost every association I have worked with could not produce a copy of the policy.
Board responsibility
Directors and officers coverage protects the people who serve.
Limits
Property and liability limits need review as values change.
Crime and fidelity
Money handled by the association or a management company needs its own coverage.
Coverage for this business
Every business is placed a little differently. These are the policies we talk through most often, and a conversation with Kristi will tell you which ones your business actually needs.
Property
Common areas and structures the association owns.
General liability
Injuries in common areas.
Directors and officers
Claims against board members for their decisions.
Crime and fidelity
Theft of association funds.
Umbrella
Higher limits above the underlying policies.
A new owner without copies
I am working with a community that has over $100,000 in policies, and the board did not have copies of any of them. That is not unusual. Keep a complete set where the board can reach it, and review it every year.
Questions we hear
The short versions of conversations Kristi has with business owners every week.
Where should the board keep policy copies?
In a place every officer can reach, with a second copy off site. Do not rely on one person’s email.
Is the board personally at risk?
It can be. Directors and officers coverage exists for that reason.
How often should we review limits?
Every year, and any time values or the building change.
Ready to have someone in your corner?
Book a free consultation. We’ll walk through your business, identify the gaps, and build a strategy that actually fits.