Florida HOA Insurance

Florida HOA Insurance

Understanding Florida HOA Insurance

Florida HOA Insurance is an important concern for any homeowner. An HOA, or Homeowner’s Association, is the group that is going to direct developer build rules, manage the property and play a part in selling a community. HOA insurance is purchased to protect common areas of the association and offers normally general liability for incidents.

If you are a Florida resident and concerned about HOA insurance, then there are a few things you should know. Here are a list of three to always keep in mind:

1)            The HOA insurance levels depend on the size of the community and what protections decision-makers believe are needed. It also relies on the current amenities that are offered within the community. There will be a general liability for normal coverage for financial losses and property insurance for personal property or building damage. When you’re shopping for a home in Florida that has HOA insurance, be sure to understand what exactly it covers. You can expect that if your association has a pool, gym, tennis court and dog park, there likely are going to be higher fees than an association with none of these amenities.

2)            Florida HOA Insurance can vary greatly. Some HOA policies only cover the basics, such as exterior walls and roofs. Any damage incurred beyond that are not eligible for recourse. On the other hand, some policies cover extensive amounts of the properties. The deductibles will reflect these differences. This also is a HOA decision based on what the collective group believes to be important. As a homeowner, you want to understand the claim processing rules. For example, if the policy covers drywall-to-drywall that means it covers whatever is inside the walls. If a flood occurs and damages the electrical and kitchen cabinets, only the electrical elements will be insured. Homeowners would have to purchase a separate policy to cover their cabinets.

3)            Some Florida HOA insurance covers vehicles. This is another thing that is specific to each HOA. Any homeowner should understand if their vehicle is included in the association’s policy. Normally, the vehicles covered are work vehicles that the association uses. For example, larger associations can have golf carts to show prospective buyers the grounds. These would be covered. If there is a personal vehicle damaged, it would not be covered. Again- check your association’s policy to understand exactly what the liabilities are of having your vehicle at the association.

Florida HOA insurance is a necessity, but not all policies are equal. When shopping for a home, be sure to understand what fees you are going to pay as a result of the insurance and what exactly it covers. Being aware is the first step in protecting yourself and your home.