Homeowner Association (HOA) – Who is responsible for what?

During the past 10 years, I have lived in two Homeowner Associations (HOA) which are becoming more popular. The home/units can be a single-family home, 2–4-unit town homes or condominiums.

The home/unit owners may pay monthly dues for snow removal, lawn maintenance, maintenance for common areas, insurance premiums, garbage, etc.

The HOA may have a Master insurance policy which may provide insurance coverage for the home/unit, club house, swimming pools, tennis courts, etc.

With the increase of insurance premiums, the Master policy may have a large deductible. For example, $25,000, $50,000, 2% wind & hail, 5% wind hail.

It is recommended that the home/unit-owner purchase a HO-6 insurance policy which would provide coverage for his or her personal property (Coverage C) (clothing, furniture, etc.), dwelling (Coverage A), personal liability, loss assessment, etc.

Both policies may include terms such as loss assessment, walls out, betterments and improvements, all in Policy, sheet rock in, paint in, building components, etc.

The Association and Homeowner/Unit Owner each have their own insurance policy.

It is important for the Homeowner/Unit Owner to know the limits of the Association’s Master insurance policy so each homeowner can arrange their own HO-6 insurance policy to avoid gaps in coverage.

Usually, a Master policy has an annual policy term. At the renewal, the Association may change the Master policy by changing insurance companies, increase or decrease the deductible, change the forms which means the homeowner/unit owner may have to change their HO6 insurance policy to avoid gaps.

By Ann Valley