What Does Homeowners Association Mean?
A homeowners’ association (HOA) is a governing party that has authority over the homeowners that comprise its membership. HOAs commonly have a jurisdiction that covers a condo complex, a community, or a housing development.
Homeowners’ associations sometimes offer various types of insurance coverage to their members.
Insuranceopedia Explains Homeowners Association
Homeowners’ associations commonly provide insurance coverage for the common areas governed by the association. For example, a homeowners’ association at a condo complex might provide liability coverage for all of the tennis courts, pools, and grass areas at the complex. This means that homeowners in the complex only need coverage for their individual units and will end up paying less for property insurance. They will still, however, owe dues to the homeowners’ association.