DOES AN HOA AFFECT MY INSURANCE COVERAGE?

Is there an HOA in your community? Do you pay recurring fees to the Association? Does the HOA maintain your neighborhood’s common areas, enforce neighborhood rules, and make sure maintenance is regularly completed? It’s important to understand what your HOA does to ensure you have the right type of insurance. Keep reading to learn what your HOA fees cover and how this information can affect your home insurance coverage. 

What is an HOA?

If you live in a community with a homeowner’s association, an HOA, you are likely well aware of it. Most likely because you pay monthly, quarterly, or yearly payments to the Association. An HOA is led by an elected Board of Directors, who are individuals living in your community. The Board is in charge of overseeing and control many aspects of your planned community, or subdivision.

One of the HOA’s primary responsibilities is maintaining residents’ common areas such as a park, tennis court, pool, or clubhouse. Another responsibility includes creating guidelines such as landscape maintenance, parking stipulations, and security. Some HOAs can even determine what color you can paint your home, how long you can leave your garage door open, and even the height of your grass. HOA residents need to understand Florida noise or  nuisance laws as well. All of these rules and regulations are put in place to help everyone under the HOA’s control live in a safe, and well-functioning neighborhood.

What do HOA fees cover? 

If you pay HOA fees, this money is used by your HOA to maintain the neighborhood, provide maintenance, and enforce neighborhood rules. The remaining money also goes towards HOA insurance. Your HOA has insurance to cover any damage in common areas. If you live in a townhome, the insurance likely covers the exterior of the building as well, and possibly the roof of any multi-dwelling units. The insurance the HOA purchases also provides them with protection against potential liability claims.

Do you need home insurance if your HOA is insured? 

Knowing that your HOA has insurance coverage to cover common areas leads many people to question whether they also need homeowners’ insurance. In addition, HOA insurance likely covers property damage and liability, so homeowners’ question whether they need it or not. However, before you decide, it’s important to realize not all HOA insurance policies are created the same. 
If there is an expense that your HOA’s insurance policy doesn’t cover all or part of that expense, then that expense will be your responsibility. Therefore, it is essential that your HOA stays insured, and you know what the HOA insurance policy covers and what it does not cover. The attorneys at Ferrer Law Group can help you. 

HOA Members Need to Protect their Personal Property and Liability 

The bottom line is if your HOA has insurance coverage, you are likely to benefit from it. But it would help if you were prepared to cover your personal property and liability. In the event of a claim, your HOA’s insurance policy may cover some of the claims, but whatever isn’t covered by the policy will be your responsibility. If you have your own policy to protect property and liability, you may be able to avoid paying your portion and use your insurance policy instead. But it’s always a good idea to contact a South Florida HOA attorney before you sign a contract to understand your rights and responsibilities. 

If you pay HOA fees, you need to understand how homeowner’s and HOA insurance policies affect your situation. Florida HOA law treats townhomes differently than free-standing homes. To understand this situation better, Florida HOA attorneys can go over your HOA’s insurance policy and recommend options that could help you avoid liability in the future.  

Contact Ferrer Law Group today if you want to learn more about HOA insurance and property law scenarios. Our HOA lawyers will go over your information and help you understand your rights and obligations.