Home Association Insurance in Washington
A homeowners association is a special kind of business and it has risk factors that are unique to the industry. In fact, you need home association insurance to cover both the business and the properties you represent and sometimes the obligation of insuring certain aspects of both can get into a "gray area". This is why it is important to have the right kind of coverage in Washington, and in the proper amounts. If not, all kinds of problems could develop and you might not be prepared for them. Let's look at a few examples of what can happen.
A homeowner association accountant routinely pockets deposits made into the association's bank account. This is done in small increments over the course of 11 months and when the theft is discovered, more than $55,000 is missing.
An association forecloses on a condo owner and takes possession of the property. The owner claims that more than $20,000 of property was stolen and files a suit in court.
A condo association sues the board for conducting illegal officer elections and putting friends and family in high positions. Legal fees for a lawsuit like this could reach $30,000 or more.
During the process of adding more units to a condo development, the man in charge uses the checking account to write checks to his contracting service, but there is no work provided. In fact, this man is able to steal more than $40,000 before anyone finds out what is happening.
A condo building is virtually destroyed by a tornado. The insurance pays the fair market value of the building which is 11.75 million dollars. However, due to inflation, it will cost a little over 12 million dollars to rebuild the building and because the association did not carry replacement cost coverage, they now are faced with financial problems.
These are only a few examples of the kinds of problems a home association may have to deal with, and why the right insurance is essential to a successful venture.
What is Homeowner Association Insurance?
A homeowner association is a governing body of a specific community. As such, they have the power to dictate many things people do, for the good of the community and to maintain property values. This also includes maintenance and upkeep of the building and grounds. However, this kind of power comes with a great deal of risks and they must all be covered. This is where insurance comes into play.
Who Needs Home Association Insurance?
Any organization which governs personal residences should have the proper insurance. This includes condo associations and special communities with private homes. Also, a governing body which operates for nonprofit purposes will require many of the same coverage options as homeowner associations.
Basic HOA Insurance
A home association does not have to take out the same insurance as the homeowner. These associations usually have master policies which cover four basic issues:
- General liability - this does not usually cover inside homes but areas which are common to all members like common interior walls, sidewalks, grounds, swimming pools, or clubhouses. It will pay for many types of injuries.
- Property damage - covers the building exterior, hallways, and areas accessible by all residents.
- Employee theft and dishonesty - with this coverage, the association does not have to assume the responsibility of losses caused by theft and dishonest employees.
- Officers and directors insurance - covers actions of organization officers and can include willful misconduct and sexual harassment.
Options for HOA Insurance
Some associations may need to consider the following insurance options:
- Worker compensation
- Employment practices
- Umbrella liability
- Replacement cost coverage
- Flood insurance
- Earthquake insurance
- Cyber liability
- Office equipment
Where Can I Find the Right Home Association Insurance in Washington?
Insuring a homeowner association involves taking a look at all the possible risks and developing a strategy to deal with the unexpected and the inevitable. You may already work a full-time job and have a lot of duties to attend to with the association, so where are you going to get the time to check out insurance? This is where independent insurance professionals can be so valuable.
Columbia Insurance Group is not your typical insurance office, where everyone works for the same insurance company. In fact, no one here is an insurance company employee. We are all independent agents who have the best interests of our clients in mind at all times.
When you contact your independent agent, he or she checks with the insurance companies we routinely do business with, to see what kind of options and discounts are available to you. Your agent then puts together a comprehensive business insurance package customized to your needs. This is the best way to have all the right coverage while paying the lowest possible premiums. Your association may have far more risks to cover than you imagine and this will no longer be your problem when you come to Columbia Insurance Group. In fact, after you visit the simple quote request form on this page you can get a good idea of what your premiums will be.