By John Schuknecht, CMCA, AMS
This article first appeared in the CAI Coachella Valley HOA Living Magazine, February 2025 Issue.
If you live in a homeowners association, it’s important to understand the governing documents—like the Declaration of Covenants, Conditions, and Restrictions (CC&Rs), bylaws, and articles of incorporation—especially when it comes to insurance. These documents lay out the rules for both homeowners and the HOA, and they play a big role in how insurance is handled in the community.
One of the main reasons it’s so important to understand these documents is because they often specify what kind of insurance coverage the HOA is required to carry, and what you, as a homeowner, need to have. Generally, the HOA will have insurance for things like general liability, property insurance for shared areas (like club-houses, pools, or landscaping), and coverage for the HOA board members. This protects the HOA and the community’s common spaces.
However, the HOA’s insurance typically doesn’t cover your personal property or your individual dwelling. That’s where your own insurance policy comes in. In many cases, you’ll need to get your own insurance for your home and belongings. Some HOA documents may specify that the association covers the building itself, with homeowners being responsible only for things inside their unit, like furniture, electronics, and personal liability. In these cases, homeowners often need a “HO6” policy, which covers things inside your unit, like walls, floors, and personal property.
The governing documents can also include important details about deductibles. For example, if the HOA’s insurance covers damage to a shared structure, homeowners may be required to chip in on the deductible. If the documents don’t clearly explain how this works, it can lead to unexpected costs for homeowners down the line.
In short, reading and understanding the HOA’s governing documents is essential for knowing exactly what’s covered and what you’re responsible for when it comes to insurance. It helps ensure that you have the right coverage and avoid surprises if something goes wrong. So, take the time to review these documents and make sure you’re properly protected.
John Schuknecht CMCA, AMS is a former community manager who currently works as an Account Executive for LaBarre/Oksnee Insurance. John can be reached at 657-207-4789 or JohnS@hoa-insurance.com.