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Subject: homeowner insurance requirements
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Author Messages
JimA15
(Florida)

Posts:7


04/10/2019 1:53 PM  
are homeowners in a HOA required to have homeowner insurance
GenoS
(Florida)

Posts:3233


04/10/2019 2:09 PM  
Required by whom? How are we supposed to know? Read your HOA documents.
TimB4
(Virginia)

Posts:16479


04/10/2019 3:19 PM  
Jim,

In a 2015 post you posted that you were in a 100 unit HOA.

Typically, an HOA consists of single family homes often referred to by lots.
A COA (condominium) consists of apartment style buildings or town homes and referred to by units.

Often, condominium governing documents do require owners have insurance.

Regardless of what type of development you are in, I think it would be unwise to not have homeowners insurance as this insurance covers not only the home, but the belongings and provides liability insurance if someone was injured on your property. If the cost is too high, adjust the deductible to bring the cost into something you can afford. Just don't make it too high that you can't afford to cover the deductible if something happens.

If you still have a mortgage on your property, most lenders require homeowners insurance.

Hope this helps,

Tim
JohnC46
(South Carolina)

Posts:8729


04/10/2019 4:58 PM  
Jim

In our standalone homes HOA each owner is required to have insurance and according to the Covenants to have the HOA named as co-payee. You might ask why? So the owner cannot take the insurance settlement and not correct/restore/whatever their home.

We occasionally get some new owner who say "my insurance agent says otherwise". After a letter from our attorney, the agent backs down.
MarkM19
(Texas)

Posts:419


04/11/2019 5:57 AM  
John,
I must admit I have never given this a moment of thought. My last 2 associations have been single family homes. Yes I have had mortgages on both properties. Yes I have always gotten HO insurance and never list the HOA as a co insurer. I see your point about making sure the property was restored if a fire or some other catastrophic claim happened.

My last community had 438 homes and my new community will have 1500 once it is built out. How in the world would you get all of the HOs to add the HOA to policies? How would you police them afterwards? It seems very invasive and a pain in the butt. I won't be suggesting it to my board.
KerryL1
(California)

Posts:6632


04/11/2019 7:35 AM  
Our covenants for our condos include a requirement that Owners buy HO Insurance on their condos. But there is no one who actually checks whether we do. It's not very expensive and worth the cost.
JaredC
(Texas)

Posts:214


04/11/2019 10:10 AM  
I live in a townhome community where there are six buildings and 4 units in each building. We all own our property however we share a building. Our covenants require the HOA to have insurance for the building but that's it. I personally have my own insurance that covers contents and a rider called "Loss Liability Coverage" which means if I am the reason the building burns to the ground my insurance will pay the HOA deductible which could be $10,000-$20,000. Seems pretty prudent and reasonable from my POV otherwise the HOA would have a good case to sue me.
FredS7
(Arizona)

Posts:915


04/11/2019 1:26 PM  
Maybe.

The HOA can require insurance.

The bank (if there is a mortgage) can require insurance.

Common sense can require insurance, but as far as I know this is unenforceable in the US.
GeorgeS21
(Florida)

Posts:1285


04/11/2019 1:49 PM  
Fred,

Why do you think a requirement such as this would be unenforceable?
JohnC46
(South Carolina)

Posts:8729


04/11/2019 1:53 PM  
Posted By MarkM19 on 04/11/2019 5:57 AM
John,
I must admit I have never given this a moment of thought. My last 2 associations have been single family homes. Yes I have had mortgages on both properties. Yes I have always gotten HO insurance and never list the HOA as a co insurer. I see your point about making sure the property was restored if a fire or some other catastrophic claim happened.

My last community had 438 homes and my new community will have 1500 once it is built out. How in the world would you get all of the HOs to add the HOA to policies? How would you police them afterwards? It seems very invasive and a pain in the butt. I won't be suggesting it to my board.




We do not police it but if we noticed some severe damage to a home, we would have our lawyer jump on it.
GenoS
(Florida)

Posts:3233


04/12/2019 3:31 AM  
Posted By GeorgeS21 on 04/11/2019 1:49 PM
Fred,

Why do you think a requirement such as this would be unenforceable?

I think Fred means common sense is unenforceable.
MelissaP1
(Alabama)

Posts:8599


04/12/2019 4:10 AM  
The HOA isn't a Bubble of protection or silence. Your responsible for your own stuff. The HOA is responsible for what is shared commonly. Which isn't your home, car, fence, or other items you must fix/replace. If a HOA Tree falls on a house, the HOA just cleans up the mess. The homeowner's insurance covers the house contents/damage.


I like how someone explained it best... Think of your home as a box. Turn it upside down and whatever falls out, insurance covers...

Former HOA President
SteveM9
(Massachusetts)

Posts:3362


04/12/2019 4:20 AM  
Posted By FredS7 on 04/11/2019 1:26 PM
Maybe.

The HOA can require insurance.

The bank (if there is a mortgage) can require insurance.

Common sense can require insurance, but as far as I know this is unenforceable in the US.




well if your mortgage company doesnt receive a copy of the insurance proof from your insurance company each year they will buy insurance for you at ridiculous rates and add it to your mortgage.

this doesnt happen with hoa
LetA
(Nevada)

Posts:788


04/12/2019 8:57 AM  
Posted By MarkM19 on 04/11/2019 5:57 AM
John,
I must admit I have never given this a moment of thought. My last 2 associations have been single family homes. Yes I have had mortgages on both properties. Yes I have always gotten HO insurance and never list the HOA as a co insurer. I see your point about making sure the property was restored if a fire or some other catastrophic claim happened.

My last community had 438 homes and my new community will have 1500 once it is built out. How in the world would you get all of the HOs to add the HOA to policies? How would you police them afterwards? It seems very invasive and a pain in the butt. I won't be suggesting it to my board.






How would you police that you say, when a second party is named as a co- anything on an insurance policy; the moment that policy is cancelled, all parties named on the policy get a letter that the policy was cancelled. this is quite popular with landlord tenant situations.
RichardP13


Posts:0


04/12/2019 9:39 AM  
Every mortgage requires certain types of insurance. Living in certain states requires fire, wind and flood, such as Texas and Florida, some fire and wind, some fire and flood and some just fire. Who is to provide the coverage will generally depend on the type of project. PUDS will require the homeowner to provide the coverage, while a condo will require the HOA to provide the master. Some mortgage companies are getting smart and requiring that mortgages that have a master policy also require the homeowner to obtain HO-6 coverage or it will be forced on them.

There are HOA's that have verbiage in their CCRs requires owners to maintain HO-6 insurance as a supplement to the master. It is dependent for the HOA to make sure that they enforce that requirement or they would be negligent and will suffer the consequence when a insurance company refuses to pay on a claim. Insurance companies write policies based on what is required through each individual HOA's CCRs. I have been asked to provide a list of owners and each of their HO-6 policy's for verification.
RoyalP


Posts:0


04/12/2019 10:04 AM  
from 'my' HOA's CCRs:

ARTICLE IX
INSURANCE

Section 1. Each Owner shall secure and maintain in full force and effect at such Owner's
expense, one or more insurance policies insuring Owner's property, and the improvements
thereon, for the full replacement value thereof against loss or damage from all hazards and risks
normally covered by a standard "Extended Coverage" insurance policy, including fire and
lightning, vandalism and malicious mischief and flood, if applicable. If fire, tornado or other
casualty should damage the dwelling or other improvements, Owner shall repair or rebuild the
dwelling or other improvements as soon as possible.

Section 2. Each Owner, at Owner's expense, shall secure and maintain in full force and
effect comprehensive personal liability insurance for damage to person or property of others
occurring on Owners property, any other property, or upon the Common Area, in an amount not
less than One Hundred Thousand and No/JOO ($100,000.00) Dollars for each occurrence. ..............



however


said Article is unenforceable because: there are no volunteers for the 'insurance checking compliance committee'


but


when a 'visible loss' occurs THEN the HOA 'jumps into play' with legal issuance of injunctions
RichardP13


Posts:0


04/12/2019 10:32 AM  
BUT, an HOA can fine a "volunteer" to fine someone for not putting their trash cans behind their fence. Try that one in court.
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