A homeowner’s association (HOA) should have insurance that protects the HOA against financial losses resulting from accidents or injuries that occur on the HOA premises. Without that insurance, each HOA member will be personally responsible to pay some portion of the loss. The specific type of insurance and coverage limits can be tailored to the needs of each HOA.
Tow truck towing a broken down car on the streetIf you own or operate a towing or hauling business, you probably already know what on-hook towing insurance is; in fact, the laws of your state may require you to have on-hook towing insurance as a condition to granting your business license. Whether your state requires that insurance or not, no towing or hauling business should operate without it.
All businesses can benefit from having business insurance and some businesses are even required to have it. Similarly, if you are the landlord of an apartment complex, condominium or any other rental property, you will benefit significantly from habitational/landlord insurance, which is a type of commercial property insurance policy. Here is a close look at what this type of policy covers, and why it is important.
Landlords are different from tenants because they manage apartment complexes and other residential units; however, they are similar to their occupants in one major sense: they face risks to their properties. A rental property can be vandalized, damaged due to a natural disaster such as lighting, hail, or wind, or face the risk of theft. Fortunately, a landlord/habitational insurance policy can provide coverage against these types of risks.
Most homeowners associations (HOA) own land and improvements that are available for the use of the community homeowners and their guests. The HOA is responsible for managing the use of those common areas and maintaining it in a safe condition. If someone is injured in the common area, or if property damage occurs, the HOA may have to pay damages to the injured person and pay for the cost of repairing damaged property. HOA insurance can protect the HOA against those risks.
A homeowners association (HOA) is an organization that provides governance and services to homeowners or condominium owners within the HOA. In most HOAs, the homeowners have the right to use space that the HOA owns or maintains for the benefit of all of the HOA members. That shared space is also known as the HOA’s common areas. The HOA, not the individual homeowners, is responsible for maintaining the common areas in a manner that is consistent with the HOA documents. No matter how well the HOA maintains its common areas, accidents involving serious injuries and damage to property can occur in the common areas. In many such cases, the HOA, without HOA insurance, will be held liable.
As a homeowner in a community that has a homeowners association (HOA), you will pay dues to the HOA. A portion of each member’s dues will pay for the HOA insurance. That HOA insurance is different from the homeowner’s insurance each owner has on their home. The way they work together is explained below.
HOA insurance is available to homeowner’s associations (HOAs) to protect the association from liability arising from injuries or damage occurring in the HOA’s common areas. HOA insurance is different from the homeowner’s insurance that nearly every homeowner has for their own homes. It is important to understand your HOA’s insurance coverage. The HOA insurance coverage may cover you for risks that you do not then have to insure under your own homeowners policy.
The cost of owning your home includes the cost of home insurance. The average cost of homeowners insurance across the United States is $1,083 per year; in the state of Illinois, the average annual cost in the year 2020 was $1,443. Among the top eight insurance carriers, the average annual cost ranges from a low of $1,015 to a high of $2,152.
Almost every homeowner in the United States has homeowners insurance coverage for their home. Mortgage lenders actually require home insurance as a condition for the mortgage loan. However, a surprising number of homeowners do not fully understand what risks their insurance actually covers.