Homeowners Associations typically carry general liability insurance to pay for legal expenses related to claims against the association and directors and officers coverage to protect the board members. An umbrella policy for HOAs provides liability insurance that adds on to your other insurance to secure more comprehensive coverage for your community.

What Protection Does an Umbrella Policy Offer?

Umbrella insurance policies offer additional protection when you exhaust your underlying coverage. It is a cost-efficient way to secure higher limits for your community. Typically, this insurance covers the settlement costs and legal fees that fall outside your general liability coverage.

Does Your Community Need Umbrella Coverage?

This insurance type safeguards your organization from financial losses related to issues that occur in common areas. It is a good idea to purchase an umbrella plan for your association if your neighborhood has any of the following four “P’s”:

  • Playgrounds
  • Pools
  • Ponds
  • Parks

These areas present high risks for potential accidents that may result in lawsuits. An umbrella policy for HOAs helps safeguard against liability concerns associated with these cases.

A general liability policy may not provide enough protection to prevent financial losses. Umbrella plans offer peace of mind by providing excess liability insurance to fully cover your HOA from risks and unforeseen expenses.