Homeowner’s associations help keep neighborhoods looking beautiful and staying safe. These associations need insurance coverage, but many do not understand what to look for or even how to get started on the process. With this information, individuals will better understand the importance of homeowner’s association insurance for their neighborhoods.
What Is Homeowner’s Association Insurance?
Homeowner’s associations are responsible for the establishment and maintenance of neighborhood rules. These associations keep neighborhoods operating safely and effectively. A significant part of the duties assigned to homeowner’s associations is determining the amount and type of insurance coverage necessary to protect against shared damages. Companies like Garrity Insurance offer the coverage neighborhoods need.
Types of Homeowner’s Association Insurance Coverage
There are a few types of homeowner’s association insurance coverages that can be purchased. Understanding the different types is critical for helping homeowners’ associations make the right choice for their neighborhood coverage needs.
- General liability coverage includes incidents that occur in the community’s shared spaces. This type of insurance coverage covers theft, personal injury, and property damage. This type of coverage offers protection against slip and fall accidents and more.
- The policy also covers community property, including garages, pools, reception areas, fitness areas, and more. When damages occur to these areas, the insurance policy covers it for residents.
- Director and officer liability is also an integral part of homeowner’s association insurance coverage. This coverage helps protect board members, employees, trustees, officers, and volunteers against any liability claims waged against them.
- Another type of coverage offered by these policies is building protection. The building protection includes bare walls, all-in, and single entity, depending on the coverage. These are available with master policies.
What Are the Benefits of Having This Insurance Coverage?
There are many benefits of having this insurance coverage for a homeowner’s association. Understanding the benefits will encourage associations to purchase the right policies to meet their neighborhood needs. Consider the following.
- This coverage protects neighborhood citizens from paying out of pocket for liability claims resulting from property damage and personal injuries.
- This coverage also protects association members from liability claims that rise against them.
- Homeowner’s association insurance coverage also covers damages caused by theft.
- This type of policy protects against many types of property damage that occur in common areas.
The above benefits should encourage homeowner’s association insurance interest. Homeowner’s associations need to research carefully to learn as much as possible about their coverage options. With the right level of coverage, homeowner’s associations will not experience as much stress because they have the coverage they need.
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For many neighborhoods, a homeowner’s association becomes extremely important. In addition to having the homeowner’s association in place, it is also critical there is ample insurance coverage to protect against any liability claims that arise as a result of theft, accidents, and property damage.
With so many types of insurance coverage, it can be a bit overwhelming to find the right policy. This is not a process that should be rushed by a homeowner’s association.
First, the association needs to sit down with citizens and discuss the coverage needs. Research allows a homeowner’s association to gain the knowledge they need for choosing the right insurance policy. With coverage, neighborhoods will not have to stress over liability concerns that naturally arise throughout ownership. Now is the time to seek this protective insurance coverage.
