What Is Homeowners Association Insurance?
Homeowners Association (HOA) insurance—also called a master policy—provides protection for common areas, shared structures, and the HOA itself. It’s designed to cover property damage, liability claims, and certain legal expenses that could impact the entire community.
If your HOA manages condos, townhomes, or single-family neighborhoods with shared amenities, the right insurance policy helps keep the association financially protected—and ensures peace of mind for all residents.
What HOA Insurance Typically Covers
- Property Coverage – Protects shared spaces like clubhouses, lobbies, pools, parking lots, and landscaping.
- General Liability – Covers bodily injury or property damage that occurs in common areas.
- Directors & Officers (D&O) Liability – Protects board members from personal liability for decisions made in their official capacity.
- Crime & Fidelity Coverage – Safeguards against theft or fraud involving association funds.
- Equipment Breakdown – Covers repair or replacement of essential equipment like pool pumps or HVAC systems in shared facilities.
What’s Not Typically Covered
- Damage to a homeowner’s individual unit or personal property (covered under an HO3, HO5, or HO6 policy)
- Flood damage (requires separate flood insurance)
- Earthquake damage (optional in some areas)
- Wear and tear from normal use
Special Considerations for North Carolina HOAs
- Coastal Communities – May need specific windstorm and hurricane coverage.
- Townhome Associations – Coverage boundaries between the HOA and homeowner can be complex; policies must align with governing documents.
- Condo Associations – Typically insure the building’s exterior and shared spaces, but the specifics depend on the bylaws.
How Sizemore Insurance Supports HOA Boards
At Sizemore Insurance, we:
- Review your governing documents to determine required coverages
- Identify gaps between your master policy and individual homeowners’ policies
- Shop multiple carriers for competitive rates
- Recommend D&O coverage to protect board members
- Provide clarity on deductibles and special assessments
Protect Your Community, Protect Your Board
A well-structured HOA insurance policy keeps your neighborhood running smoothly and your board protected.
Start your HOA insurance quote online or call (910) 791-1011 to connect with a Sizemore Insurance advisor today.