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Understanding HOA insurance: Condos vs. single-family homes

Condos and single-family homes within HOAs have distinct insurance needs, creating unique challenges for each type of community. Understanding these differences is essential for HOA board members, property managers and homeowners alike.

The key difference

The type of property plays a crucial role when it comes to HOA insurance. Condo HOAs typically insure the entire building, while single-family home HOAs usually only cover common areas. This impacts insurance responsibilities and costs.

More comprehensive coverage for condo HOAs

Condominium HOAs generally have broader coverage, including exterior walls, roofs and shared spaces. Unit owners usually only insure their personal property and improvements. Due to this extensive coverage, HOA fees are often higher.

A different approach for single-family home HOA insurance

In contrast, single-family home HOAs typically have more limited insurance coverage, focusing on shared amenities such as pools and clubhouses. Homeowners must fully insure their own homes and property. As a result, HOA fees are usually lower.

Legal implications to consider

Regardless of the HOA type, certain legal considerations are crucial. Both types of HOAs must:

  • Clearly define insurance responsibilities in their documents
  • Comply with Texas laws on HOA insurance
  • Have adequate liability coverage

Understanding these legal implications can help HOAs avoid costly disputes and ensure proper protection for the community.

Moving forward

Proper insurance coverage is not just about legal compliance – it is about protecting your community. Whether you are in a condo or single-family home HOA, the right insurance gives everyone peace of mind.

Review your HOA’s insurance policies regularly and consult with an experienced insurance law attorney to ensure you are fully protected. Your community’s security depends on it.