HOA owners should contact Texas Insurance Agency to learn more about securing a Houston, TX HOA master policy. The buildings and common areas of your HOA should have reliable coverage to protect you and the residents of your community. As an owner, you are responsible for the safety and health of the people within your HOA.
It’s essential to protect your liability should an accident occur anywhere on HOA grounds. You should choose a policy covering incidents at pools, playgrounds, or other common areas and amenities. If your master policy doesn’t cover the HOA’s community spaces, you risk being sued.
You already have your hands busy enforcing community rules and regulations. Don’t be left liable for events out of your control. Contact Texas Insurance Agency to find the right Houston, TX HOA master policy for you.
What Does a Houston, TX HOA Master Policy Cover?
There are quite a few situations where an HOA master policy will protect you. These policies usually provide liability and property coverage. These types of coverage are described below:
- Liability coverage: This is used to protect the HOA if a member causes injury or property damage to a third party. If a resident hurt themselves in the community park, this would be covered by liability insurance.
- Property coverage: This coverage protects any property owned or maintained by the HOA. Common buildings such as pools, clubhouses, or elevators and stairs are protected under this coverage. Under a reliable policy, you shouldn’t be liable for damage due to water, fire, wind, or crime.
Remember that a master policy doesn’t typically include coverage for all situations. Like most homeowners insurance, the HOA will likely need to purchase a separate insurance policy for flood damage. Flooding is usually not covered by property insurance.
You may also want to consider fidelity insurance to protect the HOA’s property. This covers cases where board members or employees cause intentional damage. You want to assume the best in your coworkers, but it’s better to be safe than sorry. Plan for the unexpected with the help of good insurance.
Individual Homeowners Must Purchase Insurance, Too
A master policy for your association protects property and covers the HOA’s liabilities. However, this coverage does not extend to homes in the community. Each homeowner must purchase their own insurance to cover incidents that occur in or around their home.
For example, a Houston, TX HOA master policy would cover the medical bills of a guest injured at the community pool. Unfortunately, it would not take care of bills from a guest who gets injured in a homeowner’s private pool. Likewise, a person who slips on a public sidewalk would be covered under the policy. Someone slipping on the floor inside a person’s home would not be covered.
This rule applies to property as well. If a clubhouse window gets broken, it will be covered by the Houston, TX HOA master policy. However, the policy would not cover a broken window at a resident’s home. Make sure that your residents are aware of this and know to buy their own coverage.
Does Your State Require Certain Insurance?
Both state law and your HOA’s governing documents may require your association carries certain types of insurance coverage. Your HOA might require coverage such as workers’ comp, commercial property insurance, and liability insurance. Be sure to check your state’s law to ensure that your HOA is following its legal requirements. Don’t forget to follow all rules outlined in your governing documents as well.
The Difference with Condo Association Coverage
It’s important to note that a master policy works differently for a single family HOA than a condo association. That’s because it’s more challenging to distinguish shared spaces from homeowner areas within a condo. Master policies only cover common areas of the property.
The most common options for condo insurance include the following:
- Studs-out coverage: This insurance covers parts of the building outside the individual resident units. This includes common walkways, the building’s roof, the lobby, public staircases, elevators, and the like. Homeowners are then left responsible for insuring their units’ interior walls, fixtures, and flooring. It is also known as “bare walls coverage” and is considered the most limited type of coverage an HOA can purchase.
- Single entity coverage: Providing slightly more coverage than studs-out, single entity coverage extends to bathroom fixtures, top flooring, and cabinets.
- All-in coverage: This insurance covers more than just common areas and building fixtures. It also covers the elements and fixtures inside each unit. This leaves the homeowner responsible for only their personal property in their unit. Another name for this insurance is “full coverage.”
More Coverage for Your HOA
A master policy isn’t the only coverage recommended for an HOA. In addition to the master policy, you should also have the following:
- D&O Insurance: Directors and Officers (D&O) insurance policies cover the HOA and the board members. Because lawsuits that involve HOAs can become costly, the HOA needs to be adequately covered.
- Other Coverage: Consider choosing additional insurance coverage such as workers’ compensation. Flood coverage and third-party bodily injury coverage are great additions, too. Finally, consider employment practices liability coverage.
Don’t Let Your HOA Become Underinsured
The insurance policies that cover your homeowners’ association are important to the safety and protection of your community residents. If your HOA has poor insurance coverage, your residents may have to pay higher fees to cover any accidents that happen.
You risk damaging your residents’ investments when you don’t take insurance coverage seriously. For the sake of both their property and your business, you should get proper coverage as soon as possible.
Call the professionals at Texas Insurance Agency for assistance with finding the right policy for your HOA. We’ll work with you to find a suitable policy that protects both you and other HOA members.
Fun Facts for Houston, TX:
- According to the 2020 U.S. Census, Houston’s population is over 2.3 million.
- Houston is the most populous city in the Southern U.S.
- The city is known for having an extensive selection of fine dining and cuisine options.