What your Homeowner Association Insurance Covers

Many HOAs carry "master coverage " .This coverage generally protects both damage and personal injuries.

Physical Damage marred from the HOA Master Policy

The HOA’s coverage protects in case of damage to the areas of the house shared by all owners, like roofs, shared walls, lobbies or atriums, stairways, elevators, basements, gym and pools, lakes or ponds, playgrounds, and clubhouses.

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This harm may be caused, by way of instance, by wind, flood, fire, or criminals and vandals. (Watch out for exceptions, nevertheless; for instance, it's frequently required to purchase a separate flood policy)

Injuries shielded by the HOA Master Policy

Your HOA must also buy general liability insurance to cover the expenses of any suits for medical expenses filed by those that are hurt in the common regions of the property.

By way of instance, assume the elevator on your building malfunctions and somebody breaks a leg consequently, a visitor slips on ice over a frequent pathway, or a person's grandchild nearly drowns from the neighborhood pool. 

The injured person can sue and win a significant sum of money. If your HOA insurance lacks this policy, you as well as other homeowners may rather be accountable for the health care obligations.

The HOA's liability insurance may even comprise"directors and officers" policy. This may kick in if a person sustains damage or loss because of the HOA management mishandling capital or behaving in an otherwise negligent way.