Community Association

Community Association

Six Things Your Community Association Insurance Should Cover

Every HOA, or homeowner’s association, has insurance. It’s used to protect the association and residents in case of a mishap or disaster. When it comes to community association insurance there are some things individual homeowners should be aware of.

Some homeowners believe their insurance covers property damage. This is true, however it also has other critical uses. If you have ever wondered about its cost, here are six of the major things your community association insurance should cover:

First, it covers the building. The building equates to the actual structure and anything that is attached to it, like flooring, garages, fences, pools, clubhouses, etc. When you move into a property, always find out what is covered. This way you’ll know if you have to get more insurance protection on your own.

Secondly, community association insurance also offers comprehensive general liability. This helps to protect against damage such as physical injury and property damage. If anyone is hurt, this is when this type of coverage is important to have. By far this is one of the most important parts of having HOA insurance especially if it has a large residential population.

Thirdly, employee dishonesty is covered in terms of a direct physical loss. For example, if the office bookkeeper is secretly stealing money this is the type of insurance that would be covering. This is used in case of a direct physical loss caused by falsifying or lying a monetary situation. Again- with associations that manage larger amounts of money this can be critical to protect them.

Fourthly, ordinance and law coverage covers losses due to municipal laws that regulate repairs and construction. If a HOA commissions work to be done or a new build, this is the type of coverage that will protect them from any losses if municipal laws change. It can be costly to re-do something because of an unforeseen change in laws. This type of coverage is perfect to mitigate the financial strain.

Fifthly, directors and officers liability offers coverage to protect association board members against claims of wrongful acts with regards to their specific duties. This is an internal coverage but equally important to the association as a whole.

Sixth, coverage for a HOA should cover data compromise. This is particularly relevant in today’s internet savvy world. This provides coverage for restoring data security in case of a breach. Hackers and online thieves are a major concern in the world and HOAs are not immune to threats. This coverage also saves business owners from identity theft and the cost to return to a secure environment.

When considering the homeowner association insurance issue, always remember what it covers. Though the fee may seem large, it offers a lot of protections that any HOA needs. 

Some common employee benefits are:

1. Pension plan: This benefit provides for old age. The employer and the employee each contributes some amount of money into a pension account each year such that when the employee retires, the pension value is dependent on what has been put in. this total amount can now be used to procure an annual income for the retiree.

2. Health care plan: This benefit covers all health related issues pertaining to illness and injury. These include; Sick pay, Income protection, Private Medical Insurance, Dental Insurance and Optician costs, Critical Illness Insurance and Health Screening.

3. Life insurance plan: Popularly called Death in Service, this benefit covers the employee in the event of death such that his dependents are compensated or supported.

4. Other money- savings benefits /schemes: these are benefits given to employees that will enable them save their money on purchases and avoid interest payments. These include Car Allowance, interest free loans, Share schemes and Childcare vouchers.

As an employer therefore, where to begin when considering an employee benefit package is a very important question that needs to be answered while putting into consideration the various needs of the different age group of its workforce.

Results from a recent survey where participants were asked to rank benefits by its importance showed that healthcare plan at 32% and paid time off/vacation time at 25% are even more important than even a pay raise to these employees. It is of no surprise as this two most important employee benefits help create a balance between work and life.

That said, the importance of a retirement plan and other perks or rewards that ensure employees feel valued are critical elements when working out a competitive benefit package.