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Joint Home Insurance by Owners Association

Home owners association is association formed for maintenance of apartment and welfare of residents in the apartment. Homeowners association collects maintenance charge for common area and amenities in apartment. It is also the duty of the homeowners association or apartment owners association to provide the option of home insurance to its members.

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Home Owners Association Insurance vs. Individual Homeowners Insurance


Homeowners’ association insurance generally designed to cover risk or damage for common area and amenities in the apartment.  In individual homeowner’s insurance, insurance mainly covers one’s residential home with all of its contents.

1.  Homeowners’ association insurance policies cover:

  • Damage for building, amenities or common area
  • Structure coverage (your roof, gutters, pool, etc.)
  • Employee dishonesty and
  • Theft errors

2.  An individual homeowner’s insurance policy on the other hand covers:

  • All structural aspects of your unit
  • Personal liability against injuries/accidents occurring inside the residence
  • Theft of personal property (jewelry, antiques, heirlooms, appliances, electronics)
  • Residential home with all of its contents

Why Homeowners Association Insurance?

Homeowners’ association insurance covers damage for property or building due to fire, theft or any other natural calamities. The scheme also covers risk of employee dishonesty and theft. In case, any member in management committee shows fraud, theft and cause financial liability for the association, insurance company will help association to overcome the situation under the scheme.

For individual homeowners who are member of association, the scheme help to repair or replace the damage caused to building or building structure such as roof, gutters, pool, etc. But individual homeowners also need to take individual home insurance for covering their residential home with all of its contents.

Working of Homeowners Association insurance

Homeowners association  is association for maintaining neighborhood standards and keep property value as high as possible. Homeowners’ association insurance works for minimize damage for building or structure and minimize any possibility of financial loss from an event, peril or single activity. Association insurance works much like business liability insurance because the policy works to cover against overall liability of the financial operations of the association. Homeowners association insurance policies will work for as long as the association is active and pays its premiums. Because of this fact, any damage to association property is covered and the association can collect reimbursement from the unit owner or owners.

How an insurance policy works depends on the different parts of the policy. These parts sometimes include following.

  • Commercial general liability, which works to protect against a range of business liabilities
  • Property insurance, which covers damage to common areas and personal property owned by the association
  • Auto insurance which is needed when an association owns vehicles used for maintenance and security.
  • Also work to cover parkland, wooded lots, pools or recreation areas.

Features that are a part of an Homeowners Association insurance policy work together as part of a simple package or a master package policy. Master polices work to cover more areas including interior and exterior walls, installed appliances, floors, ceilings and often all improvements made since the initial construction of the building. Other coverage included in a policy can be used to protect fences, gatehouses, garages, landscape, signs or antennas.

How an HOA insurance policy works depends on the association by-laws and the policy wording. Most often a policy can cover reconstruction of buildings, wiring, plumbing and bare walls. HOA policies can also work against a unit owner in some cases. This is a possibility when an association requires a unit owner to carry home insurance for their own unit while also paying for HOA insurance as part of the association membership.

What you can do before you make the decision.


Rates charged by home insurance companies generally differ from one to another. Find different rates charged by various home insurance companies and schemes available for your association. Before you make decision consult an agent or broker.

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  • Consult home insurance brokers: Home insurance brokers generally act as a medium between the ultimate customers and the home insurance companies. Consult a homeowner’s association insurance agent. They will be able to explain what the policies cover, advise you on what kinds of coverage and limits to get. Get detailed information on home insurance coverage.
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  • Get homeowners insurance quotes: If you want to save money when paying for two different home insurances obtain several quotes. Just be sure to compare similar plans and pricing.


Homeowners’ association insurance policy works depends on the association by-laws and the policy wording.  The prima payable in respect of every such insurance shall be common expenses. In today’s economy, you can’t put any of your financial assets at risk. Consult home insurance brokers and Get detailed information on home insurance coverage. Just be sure to compare similar plans and pricing before you get one for you.

So, is your Apartment Owners Association having a combined insurance?

Tags : combined house insurance home insurance by apartment owners association home insurance by rwa house insurance Resident welfare association RWA

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