Navigating Commercial Insurance

Is your HOA or condo association financially protected in case of an unplanned event? Following are several of the different types of insurance that comprise an HOA insurance master plan. Whether your HOA is small or large, these are necessary elements to protect your organization’s finances.

Property Insurance:

Property insurance protects the common areas of the HOA from damage. This includes areas such as pools, playgrounds, club houses, and reception areas. If there were a hurricane, fire, or vandalism in these areas, the property insurance would cover the cost to repair or replace them.

If the HOA is composed of condo units, property insurance also covers the outside structure of the building, such as the roof and outdoor walls. For indoor coverage, there are two different levels of protection that a policy may offer:

1. Bare Walls: covers damage to the plumbing, wiring, insulation, and bare walls of the individual condo units.

2. All-In: in addition to the Bare Walls protection, this covers the individual condo units’ flooring, cabinets, countertops, and other built-in items like appliances.

Review the level of coverage that your policy offers – some contain a middle ground that offers more protection than Bare Walls but less than All-In coverage.

General Liability Insurance:

General liability insurance protects the HOA against lawsuits. If someone were to slip and fall, be a victim of a crime, or experience another type of adverse event in the common area of an HOA, that person could sue the HOA. General liability insurance protects the HOA from having to pay legal fees, settlement costs, and/or court costs directly from the HOA’s funds.

Directors and Officers (D&O) Liability Insurance:

This type of insurance protects the personal assets of board members in the event of a lawsuit. If a homeowner disagrees with a decision the board has made, the homeowner could sue the board members personally. If the homeowner wins the lawsuit, the insurance will pay the judgement / settlement instead of the board members paying it.

Auto Insurance:

If your HOA owns any vehicles, you will need to insure them. Florida requires that car owners carry $10,000 of Personal Injury Protection (PIP) and $10,000 of Property Damage Liability (PDL) insurance. Since this coverage is so minimal, consider adding on additional bodily insurance liability coverage, underinsured/uninsured motorist coverage, and collision coverage to provide better protection.

Workers Compensation Insurance:

Workers Compensation Insurance (often called workers comp) provides medical payments to workers who are injured on the job.

Crime and Fidelity Insurance:

This insurance protects the HOA in the event one of the employees, board members, volunteers, or their spouses commits fraud or theft against the HOA.

CCM’s property managers are knowledgeable and experienced in negotiating insurance contracts and ensuring that your HOA or condo association is protected in the event of a calamity. Contact us today to learn how we can help your HOA evaluate its insurance coverage as well as learn about our full range of services.

Consolidated Community Management (CCM) is a full-service property management company specializing in condominium and homeowner association management in Broward and southern Palm Beach Counties.  We are committed to working together with community Boards of Directors to develop management plans tailored to the unique requirements of each community and their residents.

CCM provides a quality of service that is unique to our industry and consistently delivers a distinct competitive advantage.  Our concentrated, extensive local presence and knowledge of community associations results in lasting partnerships and superior service.  We have built our industry reputation on employing the best in the business and assigning only a limited number of properties to each Property Manager Team.

Our team at Consolidated Community Management provides expert property management services at competitive prices.  Contact us today by calling (954) 718-9903 or clicking on ccmfla.com.