![]() Most HOA's will also require the purchase of an Directors and Officers (D&O) liability policy to protect the Board Members. This coverage is important to protect the financial position of the HOA and insure their money is available to pay the HOA bills and maintain the building. Since the collects dues and are held by a person in trust, the possibility of theft of these funds is always possible. Some HOA bylaws dictate the board purchase 'crime' coverage. Since these pipes are 'shared' by all the unit owners, the HOA is responsible for the damage caused by these pipes. If a clog or a break in a pipe that runs underground between the building and the street, and a reverse flow of water or sewage damages the interior of the building, Water Back Up coverage will pay for the interior damage to the building. This coverage is especially important for older buildings. It's important to purchase Building Ordinance coverage to pay bringing the structure 'up to code' before repairs can be made stemming from a covered insurance loss. You will want a limit of insurance for property to replace all it - Brand New.īuilding codes change over time. Most HOA's own at least some property such as patio furniture, trash cans, maintenance equipment, outdoor bbq's etc. Your commercial insurance broker or agent can also help determine the cost to replace your building. And material availability and it's cost can vary seasonally and fluctuate rapidly according to current demand. Labor and material costs can vary greatly from region to region. The HOA needs Building (s) Coverage with a limit which is high enough to replace the structure(s) if they burn to the ground? Although cost estimators are available, we recommend that you secure an appraisal from a third party to accurately determine the current replacement cost of your building. Or if a tree on the HOA grounds falls and damages the car of a visitor the HOA liability coverage will be needed to pay for the repairs of the car. If a visitor gets injured on the HOA grounds, That HOA will need liability insurance coverage to pay for their injuries. Residents of a condo or townhome association can invite visitors, delivery persons and maintenance contractor which can freely roam around the parking lot, hallways and even enjoy all the commonly owned amenities such as a pool or playground. What Types of Coverage Does a Home Owner Association (HOA) Need? The areas and property within the 'owned' boundaries of the homeowner should be insured with a HO-6 Condo/Townhome policy which is specifically designed for this type of owned home. The common areas and HOA owned property are usually insured by the HOA and covered by the 'Master' HOA Insurance policy. ![]() And they should define the boundaries of the common areas and the individually owned property of the homeowners in which 'liability' is incurred. These bylaws will dictate what insurance coverage each partner (association or homeowner) is responsible to purchase. The Types and Amount of Insurance an HOA Needs is Dictated by the Association BylawsĮvery Homeowner Association has a set of bylaws that were established when the Association was formed. HOA Insurance - Coverage for Townhome and Condo Associations Serving Denver, Golden, Lakewood, Littleton, Arvada and Summit County
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