Business Insurance for Homeowners Associations

Homeowners Associations (HOAs) play a critical role in maintaining community standards, managing shared spaces, and protecting property values. But along with these responsibilities comes significant financial and legal exposure. At Elliott, Powell, Baden & Baker, we understand the unique needs of HOAs across Oregon and beyond. We have access to insurance carriers that offer plans designed explicitly for Homeowners Associations. 

Here’s a closer look at why business insurance matters for your HOA and what types of coverage should be included in a comprehensive policy.

Why an HOA Needs Insurance

Even the most well-managed HOA can face unexpected events. Whether it’s storm damage to a clubhouse, a liability claim after someone is injured in a shared area, or a lawsuit against the board of directors, risks are everywhere. Insurance provides a financial safety net, enabling the HOA to respond quickly without incurring unexpected costs on homeowners.

Insurance Coverages for HOAs

A solid HOA insurance program should be tailored to the specific layout and function of the community, but most should include the following core policies:

1. Property Insurance

Also known as “Building Coverage” or a “Master Policy,” this protects commonly owned structures and amenities such as clubhouses, pools, fences, walkways, signage, and landscaping. If a fire, vandalism, or storm causes damage, property insurance helps cover the cost of repairs or rebuilding.

2. General Liability Insurance

This is important for protecting the HOA if someone is injured in a common area or if property damage is caused by HOA negligence, for example. It covers legal fees, medical expenses, and settlements resulting from covered claims.

3. Directors and Officers (D&O) Liability

HOA board members and officers make decisions on behalf of the community—and those decisions can sometimes lead to disputes. D&O insurance protects board members from personal liability if they are sued for decisions made in their official capacity.

5. Workers’ Compensation

If the HOA hires staff, or even contractors in some cases, workers’ compensation insurance may be legally required. It provides coverage for injuries sustained on the job.

6. Umbrella/Excess Liability

This provides additional liability protection above and beyond the limits of the HOA’s general liability or auto policies, offering peace of mind in the event of a significant claim.

Partnering with the Right Insurance Provider