Homeowners Association

What Does Homeowners Association Mean?

A homeowners’ association (HOA) is a governing body with authority over the homeowners who form its membership. HOAs typically oversee a condominium complex, a community, or a housing development.

Homeowners’ associations may also provide various types of insurance coverage to their members.

Insuranceopedia Explains Homeowners Association

Homeowners’ associations typically provide insurance coverage for common areas under their management. For instance, an HOA in a condominium complex might offer liability coverage for shared spaces such as tennis courts, swimming pools, and landscaped areas. Most condo owners in HOA-managed buildings still buy a separate HO-6 condo insurance policy to cover the inside of their unit, since the HOA’s master policy usually stops at the walls. As a result, homeowners in the complex only need to insure their individual units, potentially reducing their property insurance costs. Coverage and pricing vary a lot between carriers, so it’s worth comparing condo insurance companies before picking a policy. However, they are still required to pay dues to the homeowners’ association.