Insurance for Condominium and Homeowner Associations can be complicated if you are not familiar with the many factors that need to be considered. Our Community Association Team is dedicated exclusively to serving the needs of Associations as they focus all their efforts on handling the types of insurance products and coverage specific to this unique group.
Because of the volume of Community Associations we serve, Watkins Insurance Group has built this specialized team and developed relationships with many insurance carriers in order to offer specialized coverage and the ability to consult every variety of Community Association.
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What Coverage Does A Community Association Need?
- Directors & Officers Coverage: A Community Association board member , and Community Association Managers take on significant responsibility in their position. There is risk when the board makes decisions , that those decisions may result in a in an accusation of negligence, omission, breach of fiduciary duty, etc. With so many owners involved that can be impacted by the board’s decision, it is important to have liability coverage for those members.
- Property Insurance: Board members with Community Association are required purchase property insurance for the Association to protect the financial interest of all owners. This insurance must meet the requirements in the Declarations. The Association owns all of the common elements as defined by each Community Association Declarations and Bylaws. Common elements can include: the structure of the buildings, tennis courts, swimming pools, fences, signs, monuments, sport courts.
- General Liability: The common elements are usually a great benefit to the association and residents, but if someone is injured on the property, the Association can be held liable. General liability coverage would provide protection in the case the Association is sued for bodily injury or property damage.
- Crime Coverage: You may hear this called Fidelity coverage, or employee dishonesty, and it provides coverage if an employee commits theft or other acts of dishonesty.
What are FHA Guidelines?
The Federal Housing Administration insures loans that are written by mortgage companies, they require that the insurance written on the property that the mortgage companies are financing have certain coverage in place to protect the property.
These requirements create questions for Community Association board members and the Community Association Managers whenever a unit is being sold and the loan needs to be approved within these Guidelines. For Details on the specific guidelines go to FHA Guidelines.
Watkins Insurance Group can also offer coverage for Condominium Unit Owners as well.