HOA Insurance Policies
For residents and HOA board members, there seems to be a lot of lingo when it comes to insurance. How do you know which policies cover which property? How do you know what insurance requirements to make when managing an association? We’ve explained the “walls out” and “walls in” policies to help you understand what each one covers. Master Policy This policy is also known as the HOA insurance policy and covers liabilities or damages in common areas or on the exterior of your home. The term “walls out” can also be used to describe what the master policy will cover. However, this doesn’t mean that absolutely everything on the exterior will be covered; if a storm results in extensive damage, residents will have to help pay the association’s deductible. This is what’s known as loss assessment, and it’s a good idea to add this to your HO6 policy so you’re not paying out of pocket. In addition to exterior damages, the master policy also covers liabilities in common areas. If someone were to slip by the pool and decided to sue the HOA, the liability portion of the policy would protect residents from having to pay special assessments for lawsuit fees. HO-6 Insurance Your HOA’s master policy isn’t going to cover your personal property, or anything “walls in.” If you live in a condo or any other shared space, you’re going to need HO-6 insurance. Besides insuring your personal belongings, your association’s master policy won’t likely cover anything inside the bare walls of your unit. You would be responsible for getting coverage for unit structural items such as: Carpeting, ceramic tiles, hardwood floors Plumbing fixtures Light fixtures Built-in appliances Kitchen cabinets Wall coverings And, as mentioned previously, it’s a good idea to add loss assessment coverage to your HO-6, if not already required by your association.
Selling Your Property in an HOA
Does the recent cut in mortgage rates have you thinking about selling your home? The lower interest rates make it a great time to be seller with potentially more buyers on the market. While spring and summer are known as the peak times in the market, the housing market doesn’t hibernate when autumn hits. In these less frenzied months, motivated buyers and sellers tend to work toward straightforward, mutually beneficial transactions. If you’re considering selling your home, there are a few things to keep in mind regarding selling in an HOA. A review of the Governing Documents for your Association is a good idea to know what kind of questions may arise during the sales process. If you need an updated copy of your Governing Documents, they are typically available on your Association’s website through Sharper Management. As the seller, you will be required to provide resale disclosure documents about your HOA. These documents contain a wealth of information for a buyer that include things like: * Pending litigation about the association * Up-to-date information about assessments * The Association’s financial status * Covenants and restrictions within the HOA * Any violations about the unit you are selling * Governing documents for the HOA You may request resale disclosures through the Sharper Management website or visit this link directly to learn more go to https://sharpermanagement.condocerts.com/resale/