Your homeowners association must have insurance, but it doesn’t have to waste money on coverage it doesn’t need. In Part 1 of this two-part series, we explained how to determine what coverages your HOAs must have, how to determine the value of the property you must insure, and extra coverages to consider. Here, in part 2, we explain eight coverages your HOA should have, including some that aren’t standard but that your association should consider.
The cost of insurance can hamstring an HOA. That’s why it’s important to understand HOA insurance basics so you and your board of directors can intelligently evaluate insurance bids. Here, in part I of a two-part series, we explain how to determine what coverages your HOA must have, how to determine the value of the property you must insure, and extra coverages to consider.
You may think that since your association has general liability insurance, you’ll be protected if a member sues you and your fellow board members. Not so. General liability insurance protects the association from personal injury and property damage claims. It doesn’t protect board members from claims that their actions have damaged the association or its members.
That’s where directors and officers (D&O) insurance comes in. It protects directors and officers from claims that they failed to act or acted wrongfully in their individual or group capacity on behalf of the association.