HOA Insurance Solutions

The Importance of Community Association Insurance

Insurance is every association’s first line of defense when the unanticipated happens. It acts as a form of financial protection if an HOA faces an emergency or a legal issue.

Take a natural disaster like a hurricane, for instance. Hurricanes can sweep through entire cities and leave devastation in their wake. Without insurance, your association will need to cover the cost of repairs out-of-pocket. That means tapping into the HOA’s operating or reserve accounts.

While it is good to have money set aside for such emergencies, insurance can help cover some or most of the cost of damages. This will prevent your HOA from having to drain your resources. It also prevents budget deficits, allowing your board to avoid levying special assessments, increasing dues, and/or taking out a loan.

 

Types of Insurance You Will Need

While every HOA should purchase and maintain a master policy, your community needs other types of insurance. These include but are not limited to the following:

• D&O Insurance. This covers legal fees and settlements from lawsuits against directors and officers of the association.

• Worker’s Compensation. This covers wage replacement and medical benefits for employees who suffer injuries while on the job.

• Fidelity Insurance. This covers financial losses of the association in the event of employee dishonesty, fraud, or forgery.

• Liability Insurance. This offers protection against legal actions resulting from bodily injury or property damage.

• General Property Insurance. This covers the cost of property repairs or replacement.

• Discrimination Claims Coverage. This covers legal fees and judgments against claims of harassment or discriminatory behavior.

 

How Clark Simson Miller Can Help

HOA Insurance can be one of your community’s largest expenses. Our goal at CSM is to help you find ways to control or reduce costs over time.

Here at Clark Simson Miller, we can help your Board of Directors look for a qualified insurance broker specializing in homeowner and condominium associations to get the right coverage for your association. Trust in us to find your community the best carrier offering the best price.