A homeowner's association (HOA) is an organization that manages a specific community. If you live in a community that has one, you will have to pay a monthly fee to the HOA, and you may have different needs when it comes to the insurance policy you purchase for your home. Here are a few things to understand about insuring a home that is part of an HOA.
You will need to purchase a homeowner's insurance policy
Even though you live in a community with an HOA, you still own your home, and that means you will still need to purchase your own homeowner's insurance policy. No matter what type of home it is, you will still own the house you are living in, and this will require having homeowner's insurance. If you are in the process of buying a house in a community with an HOA, you must have a policy purchased prior to closing on the house in order to close on the property.
You might need less coverage
The good news about homeowner's insurance in an HOA is that you might need less insurance for your home; however, this depends on the situation. If you own a single-family home, you will probably need a regular policy. If you own a condo, townhouse, or any other type of home that is considered a multi-family house, then you may need less coverage. To find out, you will need to ask the HOA what type of master policy they have.
An HOA master policy is an insurance policy purchased by the HOA, and it may offer some coverage for your home. Some master policies cover the entire exteriors of the homes in the community. If this is the case, you will only need insurance to cover the inner parts of your home, including coverage for your personal belongings. There are also master policies that cover the exteriors and some parts of the interiors. If this is the case, you would need even less coverage.
You can purchase a policy from any homeowner's insurance agency
Once you know what type of master policy the HOA has, you can purchase the type of policy you need. To do this, you can contact any insurance agency you would like. All home insurance agencies sell homeowner's coverage for people who own homes in communities with HOAs. To learn more about the coverage you need, call insurance agencies like United Counties Insurance Group today.