How to Get Homeowners Association Insurance

A Homeowners Association (HOA) insurance, also known as an HOA master policy, is a type of insurance that provides coverage for the common areas and shared structures in a condominium complex or planned community.

Homeowners Association Insurance
Homeowners Association Insurance

Furthermore, it is typically purchased by the HOA itself to protect its assets and mitigate risks that might affect the entire community. Homeowners who are part of the HOA are usually required to contribute to the insurance cost through their association dues or fees.

What is Homeowners Association Insurance (HOA)?

Homeowners Association Insurance (HOA insurance) is not a specific type of insurance policy, but rather it refers to the insurance coverage that the Homeowners Association itself purchases for the common areas and shared structures in a condominium complex or planned community.

However, the HOA is responsible for maintaining and insuring the common areas, amenities, and building exteriors, while individual homeowners are typically responsible for insuring their own units and personal belongings.

Is Homeowners Association Insurance (HOA) Coverage Worth It?

Whether Homeowners Association Insurance (HOA insurance) coverage is worth it depends on several factors, including the nature of the community, the extent of coverage provided, and the individual homeowner’s circumstances. Here are some key considerations to help you determine if HOA insurance coverage is worth it:

Protection for Common Areas

HOA insurance is essential for protecting the common areas and shared structures within the community. This includes amenities like clubhouses, swimming pools, elevators, parking lots, and more. If any damage occurs to these shared areas, the HOA insurance can help cover the repair or replacement costs.

Additionally, this coverage benefits all homeowners within the community, as the cost of repairs would be shared among them through association fees.

Liability Coverage

HOA insurance typically includes general liability coverage. This protects the HOA and its members from lawsuits or claims arising from bodily injury or property damage that may occur in the common areas. Liability claims can be expensive, so having this coverage can be crucial for the financial protection of the HOA and its members.

Cost Sharing

The cost of HOA insurance is distributed among all homeowners through their association fees. While it adds to the overall cost of homeownership, it also means that the financial burden of insuring common areas and shared structures is shared among the community members, potentially making it more affordable for individual homeowners.

Exclusions and Coverage Limitations

It’s essential to review the HOA insurance policy to understand what is covered and any exclusions or limitations. Some policies might have specific exclusions that leave certain areas or structures unprotected.

Moreover, if the coverage provided by the HOA insurance is limited, individual homeowners may need to consider obtaining additional insurance to protect their units and personal belongings adequately.

Individual Insurance Needs

Even with HOA insurance, individual homeowners are often responsible for insuring their unit’s interior, personal belongings, and any improvements they have made to the unit.

Therefore, individual homeowners will still need to purchase their own insurance policies, known as “HO-6” insurance, to cover these aspects. Evaluating individual insurance needs is crucial to determine the overall cost of homeownership.

HOA Rules and Regulations

Some HOAs may have specific insurance requirements for individual homeowners. It is essential to understand and comply with these requirements to avoid any potential conflicts or coverage gaps.

Peace of Mind

HOA insurance can provide peace of mind to homeowners, knowing that the common areas and shared structures are protected. Additionally, having proper liability coverage can give homeowners confidence in case of accidents or incidents on the common property.

What Does Homeowners Association Insurance Cover

Well, the exact coverage may vary depending on the specific policy and the insurance provider, but here are some common elements that HOA insurance may cover.

Common Area Buildings

HOA insurance generally covers the buildings that house shared amenities and facilities, such as clubhouses, swimming pools, gyms, community centers, and other recreational areas. If these structures are damaged or destroyed due to covered perils, the insurance can help cover the repair or replacement costs.

Common Area Property

This includes coverage for property owned by the HOA, such as playground equipment, fences, signs, landscaping, and other shared property. If any of these items are damaged or stolen, the insurance can provide compensation for repairs or replacement.

Liability Insurance

HOA insurance typically includes general liability coverage. This protects the HOA and its members (board members, volunteers, employees) from lawsuits or claims arising from bodily injury or property damage that may occur in the common areas. Well, for example, if a visitor slips and falls in a shared community area and sues the HOA, liability insurance can help cover legal expenses and potential settlements.

Directors and Officers (D&O) Liability

This coverage protects the HOA’s board members and officers from lawsuits related to their decisions and actions in managing the association. Moreso, it can help cover legal expenses and settlements if a board member is sued for alleged mismanagement or breach of duty.

Property Damage from Covered Perils

HOA insurance typically covers damage to the common areas caused by specific perils, such as fire, vandalism, theft, lightning, windstorms, and certain other hazards. The specific covered perils should be outlined in the policy.

Meanwhile, it’s important to note that while HOA insurance provides coverage for the common areas and shared structures, it generally does not extend coverage to the interior of individual units or the personal belongings of homeowners.

How to Get Homeowners Association Insurance

Getting homeowners association insurance involves several steps and considerations to ensure adequate coverage for the community and its members. Here’s a general guide on how to obtain homeowners association insurance:

Understand the Insurance Needs

The first step is to assess the insurance requirements of your homeowners association. Consider the size of the community, the amenities it offers (such as swimming pools, tennis courts, clubhouse, etc.), and any potential risks specific to the area (like flood or earthquake zones).

Research Insurance Providers

Look for insurance companies that specialize in providing coverage for homeowners associations. Also, some insurance companies offer specific policies tailored to the needs of HOAs.

Obtain Multiple Quotes

Contact multiple insurance providers to request quotes. This will allow you to compare coverage options and premiums to find the best fit for your association’s needs and budget.

Work with an Insurance Agent or Broker

Consider working with an experienced insurance agent or broker who has expertise in dealing with HOA insurance. Additionally, they can guide you through the process, help you understand your options, and negotiate on your behalf to secure the best possible coverage.

Review Coverage Options

Discuss with the insurance provider or agent about the different types of coverage available for HOAs. Well, common types of coverage include:

  • General Liability Insurance: This covers bodily injury and property damage claims that may occur in common areas within the community.
  • Property Insurance: This covers physical structures and assets owned by the homeowners association, such as clubhouses, fences, and signage.
  • Director and Officer (D&O) Insurance: This protects board members and officers from legal claims related to their decisions and actions taken on behalf of the HOA.
  • Umbrella Insurance: This provides additional liability coverage beyond the limits of other policies.
  • Workers’ Compensation Insurance: If the association has employees, workers’ compensation insurance is essential to cover workplace injuries.
  • Fidelity Insurance (Crime Insurance): This protects against employee theft, embezzlement, or fraudulent activities.

Assess Deductibles and Limits

Evaluate the deductibles and coverage limits of the insurance policies you’re considering. And also, ensure that the limits adequately protect your HOA in the event of a significant claim.

Review Exclusions

Understand any exclusions in the insurance policies, as certain risks may not be covered. Consider additional coverage if necessary.

Obtain Board Approval

Present the insurance options to the HOA board of directors for review and approval before finalizing the policy.

Renew and Review Annually

Insurance needs and risk factors may change over time, so it’s essential to review and update your insurance coverage annually to ensure ongoing adequate protection.

Top Best Homeowners Association Insurance Companies

Well, you should know that there are actually some top best homeowners association insurance companies that are recommended for this insurance coverage type and they will be stated below for you to go through.


Travelers is a well-established insurance company with a long history dating back to 1853. They offer a variety of insurance products, including homeowners association insurance. They are known for their financial strength and stability, providing a sense of security to their policyholders. Travelers’ HOA insurance solutions typically include general liability, property coverage, and optional endorsements to tailor the policy to the specific needs of the association.

State Farm

State Farm is one of the largest insurance providers in the United States, offering a wide range of insurance products, including coverage for homeowners associations. They have a strong presence and a vast network of agents across the country, making it convenient for associations to access their services. State Farm’s HOA insurance offerings may include general liability coverage for common areas, directors’ and officers’ liability, and property coverage.


Nationwide is another prominent insurance company that offers insurance solutions for homeowners associations. They have a solid reputation and offer a comprehensive suite of insurance products for communities. Nationwide’s HOA insurance options typically cover general liability, property insurance, D&O insurance, and crime coverage for employee dishonesty or theft.

Farmers Insurance

Farmers Insurance is a widely recognized insurance provider known for its diverse insurance offerings. They offer coverage for homeowners associations, tailoring their policies to meet the unique needs of each community. Farmers’ HOA insurance products may include general liability, property coverage, and D&O insurance to protect the board members.


Allstate is a popular insurance company that offers homeowners association insurance to help protect associations from various risks. They are known for their user-friendly policies and strong customer service. Allstate’s HOA insurance coverage generally includes liability protection for accidents in common areas, property insurance, and additional coverage options based on the association’s needs.

Frequently Asked Questions

Can an HOA Require Homeowners insurance in Florida?

Property and liability coverage is required for homeowner’s associations in Florida. Also, there are additional coverage options that you can select as well and these covers covering for demolition costs as well as directors’ and officers’ insurance.

What is Dwelling Coverage?

The portion of your homeowner’s insurance policy known as dwelling coverage, or “dwelling insurance,” may assist in covering the cost of repairing or rebuilding the physical structure of your home if a covered hazard causes damage to it.

What Kind of Insurance Does HOA Need in Florida?

Well, in Florida HOA insurance needs property and general liability insurance for any commonly-owned property.

What is HOA in Florida?

An HOA, or homeowners association, is a self-governing private organization established to safeguard the shared interests of a neighborhood or community. However, it is essential for establishing and upholding the laws and regulations that specify what property owners and residents are allowed to do with their properties.



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