Understanding The Importance Of HOA Insurance

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There are a ton of insurance policies that you should be well-acquainted with. There’s car insurance, home insurance, life insurance, health insurance, and many others. One that you might not be familiar with is HOA insurance and if you’re living or if you own a shared space like a condominium, you need to know what this is.

HOA stands for homeowner’s association. It’s also referred to as a master policy. To put it simply, HOA insurance covers you from any legal liabilities if some injuries or accidents happen in a common community space on your property. These areas include the lobby, the gym, and many others.

The HOA is the one that purchases the insurance policy. However, if you are a resident of the area, you will be charged fees that will help cover the premium made for the insurance. It’s a vital insurance policy for HOAs but it’s not something that regular residents typically know of.

It can be a bit complex to understand how exactly an HOA insurance plan works. There are a lot of caveats to it. However, what you need to understand is that the HOA covers issues that happen in common community areas and that’s it. With regards to why it is important, here are a few reasons why.

Property Damage Can Be Expensive

One of the most important aspects of HOA insurance is that it covers damages made to the property. Of course, the exemption is that if the damage is made inside individual residents and homes, then the insurance plan won’t cover it. For homeowners, this is a very important type of coverage.

We can never really tell when accidents or natural calamities will happen around the property. As with regular home insurance, it can be very financially debilitating to cover expenses made for repairs and lost property as-is. With an insurance plan, however, it will be a burden that’s easier to shoulder.

Now, condominiums and other shared residential areas thrive on having good and safe surroundings. For instance, if your lobby suffers through a strong storm and there’s a ton of damage made to it, then not having these issues fixed can actually discourage more people from renting properties in the place.

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HOAs must take care of the common areas inside their space. It helps make the common areas more beautiful and fun to hang around in. Again, as fixing these problems as it is can be expensive, you might want to avail HOA insurance to at least lessen the burden on your end.

Make Common Areas Hazard Free

It doesn’t take much for a structural flaw to cause serious injuries or even death to those living inside the space.  HOA should always prioritize the safety and well-being of the residents that are under their management because the last thing anyone wants is having someone injured in the common areas.

If your property gets damaged, you need to fix it fast and have possibly hazardous problems sorted out. It can be heavy to shoulder but with Balsiger insurance, it’s going to be a lot easier to address these problems immediately. The residents can resume living worry-free once the property is fixed.

While it is true that HOA insurance handles any liability for injuries caused on the property, that doesn’t necessarily mean that the HOA should just let them happen. Having the capacity to address any immediate problems can save a life or prevent an injury from happening inside the property.

Help Prevent Bigger Problems In The Future

The goal of all insurance policies is to make big problems a lot smaller in the future. HOAs need to understand that there are just so many things that can go wrong in a shared living community. As HOAs act as heads or leaders of the community, they should be prepared for anything.

Natural calamities and other damaging accidents can be very costly. With insurance policies, however, the fees to bring things back to normal are going to be cut significantly. The benefits of HOA insurance definitely outweigh the fees for future problems.

Worry Less

Like other insurance policies out there, one of the benefits of HOA insurance is that it gives HOA heads a lot less to worry about. This gives them the capacity to think about other ways on how they can improve the general areas inside the property instead. These kinds of steps always benefit those on the property and those that manage it.

If you have a car or home insurance, you definitely understand how freeing and assuring it actually is to know that you don’t have to spend a lot of damages and losses if they do happen. As there’s less stress to worry about, it will be easier for the HOA to manage the property and the residents well.

Even residents will feel a lot more secure if they know that the property they are on is covered by HOA insurance. It’s something that benefits everyone.

Is It Worth Getting?

The short answer is yes – HOA insurance is worth getting. It covers a lot just and just like any other insurance policy, it’s an investment that pays off in the long run. You can never really tell when something bad is set to happen inside the property. Being prepared for these tiny accidents can benefit the HOA as well as the residents.

The fees or the premium that the HOA has to pay to get covered isn’t exactly cheap. However, it’s a lot cheaper as compared to what they can spend on repairing damages and legal battles if they operate without HOA insurance. Again, it’s an investment and not just some mere expense.

HOA insurance is an integral policy to invest in for HOAs. There are a lot of benefits to it and it’s more than just about releasing any legal liabilities and high repair costs on behalf of the organization. It’s also about making the residents, as well as the HOA, feel more secure in the common areas of the property.

The views expressed in this article are those of the authors and do not necessarily reflect the views or policies of The World Financial Review.