Habitational- Coverage for Apartment buildings, Condominium, Townhome, or Homeowner Association complexes.
There are four types of coverage categories in protecting these interests.
- Building Property-
Important considerations are the Replacement Cost, Building Ordinance, Other Structures, and the Settlement Valuation for the building. Also, a key to considering rebuilding is with respect to the Condominium/Townhome Unit Owner building coverage. Does the HOA building coverage cover outer walls only, inside walls, include renovations or remodel (Betterments and Improvements). The policy needs to match what is written in Insurance Requirements section in the HOA’s CC&R’s.
- Commercial General Liability-
This is the coverage that defends against property damage or injury to other either in the operations or on the grounds, either in the buildings on approaching in parking areas, walkways, pools, or other. A key consideration is referring to the CC&R’s to see if necessary for Cross-Liability coverage to be included which protects against claims or law-suits from one owner to another.
- Directors & Officers-
This a critical coverage to include as it provides defense and pays to cover claims wherein a HOA Board member makes an error or fails to implement or act in a manner consistent with the expectations common to the industry that results in damage, injury and/or loss of value in a home or to the common interests of the HOA.
- Fidelity Bond, aka Employee Dishonesty-
This necessary coverage reimburses the HOA in cases where either an employee, director, or even property manager steals, robs, or commits fraud against valuables or monies from the HOA.