Details about Homeowners Association Insurance

Homeowners association insurance covers loss and damage to property, plus liability to cover the acts of employees, directors and board members. The homeowners association may offer homeowners insurance to its members, but if not, you can buy your own policy. Here's a quick list of things that a standard policy will cover:

  • Damage to structure
  • Loss due to theft, fire or some natural disasters
  • Protection against illegal and fraudulent acts by employees, directors and officers
  • General Liability Coverage

The coverage is not comprehensive, and should not substitute your own homeowners insurance policy. For instance, it won't cover loss of or damage to your furniture, electronics and other personal possessions. If you live in areas that are prone to certain natural disasters, such as floods or earthquakes, the homeowners association insurance may not cover loss if you home gets damaged. This can mean financial hardship for those who don't have a separate insurance policy and suffer loss due to circumstances not covered.

It's important to review your policy carefully to determine the scope of your coverage, and purchase your own insurance to fill in the gaps. Shop around for the best quote on your homeowners association insurance the same way you would for a regular homeowners insurance policy.


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