HOAs, also known as Homeowner’s Associations, are groups that oversee a specific property. For example, if you live in a housing development or condominium that’s part of an HOA, you’ll have to pay dues which will grant you access to the communal areas, like pools and other recreational opportunities that are part of the property. The HOA will also cover things like ensuring that snow is plowed properly, coordinating garbage pickup, and even maintaining the grass and flower beds of these common areas.
Many HOAs also include something similar to homeowner’s insurance for their members, but it may not be the amount of coverage that you need. Want to know more? Let’s explore together.
Your HOA Contract Only Covers Certain Items
When you sign up to join an HOA, you’ll receive a contract that you need to sign. This contract includes things like the monthly or yearly fees that you need to pay in order to retain your membership (which may or may not be voluntary, depending on where your home is located), as well as a listing of the things that the HOA will cover.
Generally, the HOA will use the dues paid to keep the common ground of the area in good working condition. If the pool needs maintenance or a flower bed needs to be overhauled, they’ll pay for it out of those funds. Also, if you live in a condominium, where the entire building is made up of units that are part of the HOA, the Homeowner’s Association usually takes care of broken pipes, backed up sewers, and even major repairs to the building, like a new roof, that they may request additional funds for (usually called a special assessment).
Because of this, it’s easy to assume that you don’t need homeowner’s insurance if you’re part of an HOA. However, if you look over the list of things that they cover, you’ll find a few glaring omissions, including damages to your personal property.
Additional Insurance Coverage
In order to ensure that you have all of the insurance coverage and protections that you need, it’s important to contact an insurance agent. Bring along a copy of your HOA contract, so you can go over it and see what the HOA would cover in case of storm damage or other problems (and what they wouldn’t).
For standalone homes that are a part of an HOA, the membership contract may not cover your house and its contents, meaning that you’ll need a separate homeowner’s insurance policy. Condos that are consist of a single building, on the other hand, might have structural coverage in the HOA contract, but any of your belongings may not be insured, so you’ll have to take out a policy to cover them on your own.
Can You Have Both?
The short answer here is yes, you can have both insurance coverage through your HOA and a separate homeowner’s insurance policy through your usual company. The thing that must be made clear is what each policy covers, so that there’s no overlap.
Want to better understand what your HOA covers and what additional coverages you may need? Contact our knowledgeable team at Charlotte Insurance today!