Watch on YouTube · Mark Saunders with a guest from Peak Insurance Group · 13 minutes
Does your HOA’s insurance cover what your community expects it to cover? In this video, Mark Saunders of Saunders HOA Management discusses insurance gaps discovered while working with communities in the Winston-Salem area, joined by an insurance professional from Peak Insurance Group.
The conversation explores how unclear governing documents and mismatched association and homeowner policies can leave parts of a property inadequately insured. Using examples involving attached townhomes, roof damage, and rebuilding after a fire, they explain why boards, management, insurance professionals, and association attorneys need a clear understanding of who is responsible for what.
Key takeaways
- Review the actual coverage. A policy covering common-area features does not necessarily insure the residential buildings as the board expects.
- Clarify responsibilities. Roofs, siding, windows, doors, and other components may have different responsibilities under your community’s documents.
- Coordinate both policies. The association’s master policy and the owner’s policy should be reviewed together to identify potential gaps.
- Consider connected homes. An uninsured loss or incomplete rebuild can affect neighboring properties and the wider community.
- Get the right help. Work with insurance professionals and association counsel to review coverage, clarify documents, and follow any required process for changes.
Questions to ask your board or management team
- Which building components does our master policy insure?
- What coverage must each homeowner maintain?
- Do our governing documents clearly describe those responsibilities?
- Have our policies and coverage limits been reviewed against those responsibilities?
The claims and rebuilding examples in this video illustrate particular situations. Actual coverage depends on the policies, governing documents, and circumstances of the loss.
Related video
Why does my HOA ask to be listed on my homeowners insurance?
Need help reviewing your community’s needs?
Contact Saunders HOA Management or find your community’s information.