When you live in a residence that’s part of a homeowner’s association (HOA), there are many different rules and regulations you must understand and follow. It’s also important to become familiar with exactly what is included in the dues you pay, especially when it comes to insurance. As an HOA member, it can be confusing to figure out how much of your home insurance your association covers and what you still need to purchase. The knowledgeable insurance agents at Cundiff & Company Insurance have helped numerous Somerset, KY, residents find the right coverage to satisfy their HOA needs.

Below, they go over the ways a homeowner’s association can impact the type of insurance you require and points to keep in mind while shopping for your policy:

• HOA’s Insurance Obligations: The first thing you must determine is what your HOA’s insurance obligations are. This differs from community to community and often depends on the kind of property you live in. Reviewing the association’s policy will tell you what is covered and for how much. From there, you can establish if there are any gaps in coverage you need to fill. If an HOA doesn’t have sufficient coverage in any area, there is potential for a special assessment to be levied on the residents, making everyone pay more in the event of a disaster.
• Single-Family Home vs. Condo Ownership: Although HOAs are typically associated with multifamily buildings, it’s possible to be part of one if you own a single-family home as well. Whichever one you live in will influence the kind of home insurance you must have. For a single-family home, it’s likely the HOA policy will only cover common community amenities, and you will need to insure your dwelling and possessions. For condos, you will probably only need to insure the interior of the unit and your personal property.
• Liability Coverage: Liability is an essential component of all home insurance policies. Even if your association has liability coverage for the common property, it’s a good idea to consider purchasing more if you own a condo. This is because issues like a water leak or fire can easily affect other units, potentially making you responsible in a liability claim. Your homeowner’s association may also require you to have a certain amount of liability in your own policy.

The more you know about the effect HOAs have on home insurance, the easier it will be to identify what coverage you need to buy for adequate protection. Contact Cundiff & Company Insurance at (606) 679-8379 to find out about your options if you’re in a homeowner’s association and request an insurance quote. Visit them online to learn more.