HOA Insurance vs. Homeowners and Condo Insurance
For condo unit owners, determining how much condo or co-op insurance you need depends heavily on your master policy. There are two major types of condo insurance quotes that your HOA can buy.
Bare walls coverage: This covers the structure of your condo—in other words, the bare walls and everything in them, like plumbing and wiring.
All-in coverage: This is like a “ bare walls plus” policy, covering everything that bare walls coverage includes and adding installed features, like appliances and countertops. If your HOA bought all-in coverage for its condos, review what the master policy covers so you don’t pay for extra coverage on certain things.
The main thing condo owners are responsible for is personal property coverage. The master policy won’t protect your personal belongings, so you need to make sure the replacement cost of your possessions is covered.
Your condo insurance should also include dwelling coverage, loss assessment, loss-of-use, liability, and medical payments coverage.
Homeowners who live in an HOA for single-family homes or subdivisions will notice that their home insurance coverage isn’t much different than it is for homeowners who don’t belong to an HOA. In these cases, the HOA insurance coverage doesn’t cover the structure of individual homes, so the dwelling coverage isn’t impacted by the master policy like it is for condos. However, there are a few key things to keep in mind when you shop for insurance as an HOA member:
Your lender may require you to buy loss assessment coverage, which would cover property losses to common areas after the master policy reaches its coverage limit.
Your insurance company may have a discount for HOA members. That’s because HOA communities are often gated or more secure than other neighborhoods, so the home is less likely to fall victim to theft.
The master policy may provide some small amount of liability insurance to cover accidents in community spaces. Your home insurance will pick up the rest of the claim after the master policy ’s limit is reached.