For More Information, Contact Sean Hertel at or 704-945-2302.


Whether your community is part of a homeowners association (HOA) or you’re on the board of a condo owner association (COA), insurance is a vital part of the organization. Every COA and HOA must have an association master policy based on your specific bylaws that detail what the association will cover and what the home or condo owner is responsible for.

Whether you’re a new association in a new development or you’re a long-running COA or HOA looking for better insurance, your association needs very specific coverage.

What are HOAs and COAs responsible for insuring?

The specifics of this are governed by your bylaws, but in general HOAs and COAs are responsible for covering common buildings and areas used by owners and their guests. Condo owner associations must go a little further in their coverage than a typical HOA.

COA insurance must cover the building that the units are housed in. However, the coverage varies from association to association. There are three main types of COA insurance coverage:

Bare walls: The most common form of COA insurance, this only insures the roof, walls, ceilings, floors, and elevator. You may choose a policy that requires the owner to insure the interior walls on their own policy.

Single entity: The basic internal structures of the unit are covered under the policy including fixtures, cabinets, floors, and ceilings, but it does not cover improvements made by the owner.

All-in coverage: The COA insurance covers the entire condo unit including fixtures, cabinets, floors, and ceilings, as well as improvements made to the internal structure of the unit.

None of these coverages include a condo unit owner’s personal property.

What kind of insurance coverage does HOAs an COAs need?

All associations are unique in their design, common areas, buildings, and other insurable needs. That being said, most condo owner associations and homeowners associations need specific forms of insurance coverage.

Business Liability Coverage: When someone is injured or suffers property damage in an association-owned part of your community, the HOA or COA can be held liable for their medical expenses or repairs.

Commercial Property Insurance: This helps pay for damage to association buildings and common property caused by fires, storms, and other covered perils.

Building Ordinance Coverage: Over time, you’ll need to update or replace old buildings in your community. If new or updated regulations increase the cost of repairing or replacing a building, this helps cover the increased cost.

Crime Insurance: Crime that impacts community spaces or the association board of directors can be covered by crime insurance. Imagine a dishonest board member who steals members’ dues or a robbery that occurs in the HOA gym or other common building.

Directors & Officers Liability: It’s difficult to convince an owner in the  association to sit on the board if they’re worried about getting sued. D&O liability coverage protects board members from liability claims and lawsuits.

Other insurance coverage your association may need:

  • Equipment breakdown for boilers, furnaces, and other mechanical equipment
  • Sewer backup coverage
  • Workers compensation for employees who work for the association
  • Flood insurance to help rebuild and repair buildings and common areas after a flood

Whether you’re part of a brand new condo or homeowners association or your community has been around for many, many years, you need the best insurance at the best price. Contact Charlotte Insurance today for a free quote and to protect your association, board members, and owners.