What types of insurance policies cover HOAs?

Homeowner Associations (HOAs) in Washington are governed by state laws which require them to carry certain insurance policies. Generally, HOAs are required to purchases a Master Policy, which provides coverage for property damage due to fire, vandalism, and other events. They may also require liability insurance to protect against claims from third parties, such as injury or property damage occurring on common property owned by the HOA. Lastly, HOAs may elect to purchase "directors and officers" insurance policies, which protect the HOA board of directors and its officers from financial losses due to negligence. When selecting an insurer, HOA boards should make sure that the insurance company is adequately licensed, financially secure, and provides the coverage necessary for their organization. It is recommended to review your policy each year to make sure that the coverage is up to date and appropriate for the needs of the HOA. Additionally, most HOAs only carry insurance that provides coverage for the HOA itself, and not the individual homeowners. Therefore, homeowners should purchase their own insurance policy to protect their property and liability. Homeowners insurance typically covers damage caused by natural disasters, theft, and other accidents. It is important that HOAs and homeowners understand the different types of insurance policies available to them and purchase the coverage that meets their specific needs. This can help prevent financial losses due to unexpected events, as well as provide peace of mind.

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What types of insurance policies cover HOAs?

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