Recently, I had the opportunity to speak with a local group of homeowners association board members about one of the most important and often misunderstood aspects of community management: insurance. While few outside of the industry get excited about this topic, it is vitally important that volunteer board members at least have a basic understanding of the coverage provided and the most common risks an HOA faces.
Whether an association is responsible for a condominium, townhouse community, or single-family neighborhood, every board shares the same goal: protecting the community’s financial future. During our discussion, we focused on several key questions every HOA should be asking:
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Do we clearly understand what the association is responsible for insuring?
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Are our liability and Directors & Officers (D&O) limits adequate for today’s risks?
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Have we verified that our contractors carry both General Liability and Workers Compensation insurance?
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Are our common property values and insurance limits still accurate?
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Do we have a proactive plan for inspections, maintenance, and claims prevention?
One of the biggest takeaways from the presentation was that insurance is only one part of effective risk management. Regular property inspections, proper documentation, thoughtful vendor selection, and annual policy reviews can help prevent many of the claims that associations face.
As part of the presentation, attendees received an HOA Insurance & Risk Management Review Checklist designed to help boards evaluate their current insurance program and identify potential gaps before a loss occurs. I have made that document available for download below.
Serving on an HOA board is a significant responsibility, and most board members are volunteers who simply want to do what’s best for their communities. Taking time each year to review your insurance program and risk management practices can help protect both the association and the people who serve it.
If your HOA board would like a complimentary review of your current insurance program or would like to schedule a similar educational presentation, we’d be happy to help.
Download the HOA Insurance Review Checklist: https://www.overbayinsurance.com/wp-content/uploads/2026/07/HOA_Insurance_Checklist.pdf
Jon Overbay
Overbay Insurance Services
Providing superior service and peace of mind.
