What To Look For When Restructuring & Coordinating Your HOA Insurance
As an HOA board member, one of your roles is to review and update all insurance documents to ensure your organization has adequate coverage. Rowcal can work with you to restructure and coordinate your insurance coverage depending on your organization’s current needs.
In our latest article, we explore components of your insurance policy that you analyze to determine if your insurance is up to date. Feel free to contact us to schedule a consultation. We’re here to help you manage your homeowner’s association!
Property Value: Renovation, Damage, And Inactivity
Whether you live in a townhouse, high-rise condominium, or a self-managed community, your property values can vary annually. If you have recently completed a renovation, you may also discover your property value has increased exponentially. Therefore, your organization may require insurance coverage that reflects your property value and covers your construction costs.
Property damage can also significantly affect the overall value of your condo or townhouse. Do you have properties that have recently been damaged due to a natural disaster or a member’s negligence/behavior? Also, ask yourself how long it has been since you’ve made any repairs or upgrades to the property. Damage, negligence, and inactivity all have a bearing on how much insurance coverage you may currently need for your HOA.
Third-Party Bodily Injury & Property Damage
In a premises liability case, the injured must establish that their injuries or damages were directly caused by the actions or negligence of your HOA. For instance, your organization may have failed to post signs to warn visitors of a hazard on the property. Failure to adequately warn visitors could have led to someone’s injury.
Therefore, if the victim hits you with a personal injury claim, you may need adequate liability insurance to protect the entire organization. RowCal can review your insurance and make recommendations to adjust your insurance so you are protected from premise liability claims.
Directors & Officers (D&O) Insurance Coverage
Due to the broad spectrum of administrative and statutory responsibilities, your board is always at risk of facing legal allegations or a lawsuit from an HOA member. Without adequate D&O insurance, your leadership could be solely responsible for paying legal fees, court costs, and other expenses as a result of legal action.
If you want to maintain a high-quality, professional board, then D&O insurance is necessary. Insurance will cover you against pre-court settlements and litigation if a case reaches that far. By working with your RowCal property management company, we can help you determine if a D&O policy is in place and if it gives you adequate protection.
Other HOA Insurance Components You May Need To Restructure
Your HOA may currently be covered under a Commercial Umbrella Liability Policy (CUP). This type of policy generally satisfies the Davis-Stirling Act General Liability insurance requirements for homeowners organizations.
However, you may need to make some adjustments within the umbrella policy to give you coverage for specific areas in your HOA, such as:
Coverage for Personal Injury against libel and slander
Unit owners as an additional insured
Management as an additional insured
No exclusion for assault and battery
No animal exclusion
Duty to Defend
Monetary and non-monetary claims
Breach of contract
No exclusion for discrimination (Fair Housing Act Claims)
No insured versus Insured exclusion
You may also want to consider adding other types of coverage including Workers Compensation or Employment Benefits and Employment Practices Liability available for HOA employees.
Property Management Service
If you are looking for a reputable property management company for your condominium, townhouse, or high-rise, contact RowCal. We provide comprehensive management services for self-managed communities and HOAs. To find out more about the products and services we provide, call us!