Watch on YouTube · Presented by Mark Saunders, Saunders HOA Management · 7 minutes
Why is your HOA asking for proof of insurance or requesting that the association be listed on your policy? In this video, Mark Saunders of Saunders HOA Management explains the reasons using an example from a Winston-Salem community.
In attached-home communities, a lapse in one homeowner’s insurance can create serious rebuilding problems that affect neighboring properties. Mark explains how insurance requirements in community governing documents help address this risk, why management monitors coverage, and the distinction between an additional insured and an additional interest.
Key takeaways
- Your community’s governing documents may require you to maintain insurance and list the association on your policy.
- Additional insured and additional interest serve different purposes. One concerns coverage; the other generally concerns notifications, subject to the policy’s terms.
- Paying off your mortgage does not remove insurance obligations in your HOA’s governing documents.
- A coverage lapse can affect neighboring homes, particularly where properties share walls.
- Your policy should match your property’s insurance responsibilities. Ask your insurance agent and management team to confirm the appropriate coverage and designation.
The replacement-value requirement and premium-recovery provisions discussed in the video belong to the community example. Requirements differ between associations.
Questions about your community’s requirements?
Contact Saunders HOA Management for help locating the information your insurance agent needs, or find your community.