A Homeowners Association (HOA) master insurance policy is essential for protecting shared spaces and structures in a community. If you’re part of an HOA, understanding what these policies cover helps clarify your responsibilities as a homeowner or board member.

1. Property Coverage

The master policy typically covers damage to shared structures and common areas, such as:

  • Clubhouses
  • Pools
  • Sidewalks
  • Roofs of multi-unit buildings

Policies may be “all-in” (covering interior fixtures like cabinets and flooring) or “bare walls” (covering only external structures). Check the specifics with your HOA.

2. Liability Coverage

This protects the HOA from lawsuits if someone is injured in a common area, such as slipping on icy walkways or getting hurt at the community pool.

3. Directors and Officers (D&O) Insurance

HOAs often include D&O coverage, which protects board members from personal liability for decisions made while managing the community.

4. Fidelity Bonds

To safeguard HOA funds, many master policies include coverage for theft or fraud by board members or employees.

5. Flood and Earthquake Insurance

Standard master policies usually exclude flood or earthquake damage. These may require separate policies if the community is in high-risk areas.

Homeowner Considerations

Homeowners should carry their own HO-6 policy for unit interiors and personal belongings, as the HOA master policy does not cover these. Ensure your coverage aligns with the HOA’s policy to avoid gaps.

By understanding the scope of your HOA master insurance, you can better protect your community and your personal property. Always consult the HOA documents and an insurance professional for detailed insights.

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