There are many ways that an HOA could either sustain damage or incur potential liability. An HOA maintains numerous common areas where residents and others may pass. In addition, there is potential liability when an unhappy owner files a lawsuit against the HOA. For various reasons, an HOA would need one of several insurance policies.

Owning property comes with different insurance requirements, and this is no different for homeowner associations (HOAs). These entities that oversee multi-resident communities must carry general liability insurance coverage. These policies are in place to protect owners from liability if any type of harm arises from common area activity. This liability insurance should cover different situations,