One of the most difficult issues for HOA board members to manage is what kind of insurance that their association has. Carefully researching what kind of insurance policy that your association will invest in is essential to maintaining coverage for major expenses that may arise as your association deals with the many different issues that may arise from your residents. If you are currently trying to figure out which insurance policy is the ideal fit for your HOA, then it is recommended that you review the tips listed below:
Depending on the type of Homeowners Association that you have, you may have common areas that your residents utilize regularly. Having insurance for your association to cover the various damages that may happen to these common areas is an excellent way to save capital on funding the entire cost of their repairs. Aside from common areas, if there is damage to a light fixture in your community’s entryway, for example, you will need an insurance policy to cover the damages. It is best to find an insurance policy that covers the many different kinds of property damage that may occur to the various parts of your community that the HOA is responsible for rather than the residents. Failure to find the proper insurance policy for your association will cause you to utilize a substantial amount of funds that should be direct towards more beneficial community improvement projects.
Another risk that any HOA faces is the risk of theft. Granted, the properties of residents are at the risks of the residents or their landlords that hold the tile. However, where the line gets blurry is what happens to assets stolen from common areas and who is fiscally responsible. If an association can invest in insurance, it can save them a great deal of capital and help them to replace these items that have been stolen from common areas within their communities.
Given that many communities have common areas where residents are paying to enjoy their time regularly, there are times where injuries occur. HOAs need to cover their costs by investing in insurance that will assist them in paying for any costs that may occur related to injuries that are incurred by their residents. Associations that fail to invest in insurance may be subject to lawsuits if the resident can show that their injuries occurred as a result of not properly maintaining common areas. HOAs are advised to exercise caution when it comes to performing scheduled maintenance to eliminate potential injuries as well as finding adequate coverage to protect their associations from fiscal liability.
The reality that many HOAs have to face is that the nature of their operations may subject them to legal liability from their residents. It is important for board members of HOAs to consult with experts in the insurance sector with prior experience dealing with associations about which potential insurance policies would be the ideal for their association and its particular needs. Insurance experts will take into account the geographic region where their association is located along with the overall size of the HOA. From this preliminary information, the insurance provider will assess what kinds of common areas they possess along with a prior record of the issues that the association was faced with the residents within their community. From there, the association insurance provider will be able to assign an accurate quote of what the HOA insurance policy will cost. HOA board members are advised to carefully assess the HOA insurance provider that they select to represent their community to ensure that they are a precise fit for the needs of their HOA.
Consider the Local Weather Conditions That Pose a Risk to Your Community
Depending on which part of the country where your HOA is located there may be weather risks that pose an active threat to not only the safety of your residents but also the overall safety of your community as a whole. It is important to have a risk assessment of the various weather conditions that may pose a risk to the residents within your community and ascertain how they may make your HOA liable. If your HOA is located in a region where there are hurricanes or tornados, then it is important to ensure that the insurance policy that your HOA acquires has adequate coverage for the common areas of your community. Failing to obtain insurance can cause major financial hurdles for your HOA if a natural disaster hits that your HOA had not financially planned for previously. Be sure to carefully consider HOA insurance policies that have extensive offerings related to extreme weather conditions. By doing so, you will be setting your HOA up for success to not have excessive expenses in the event of a severe weather emergency.
How Elite Management Services Can Help
Elite Management Services (EMS) has many years of experience assisting HOA Associations with their management practices. Our main objective is to introduce cost-effective management practices that improve the quality of life of residents of our communities. Our approach enables us to have a personalized relationship with our clients to ensure the success of their communities. We achieve this by customizing our HOA Management model to fit the community’s unique size and particular requirements. Depending on where your community is located, our experts will be able to customize an HOA Management strategy that is tailored to your community’s individual needs. By deciding to work with an organization such as EMS, you will see a great improvement in your community’s finances and efficiency, which will have a positive impact on the satisfaction of your residents.