HOA Board Duties Regarding Insurance

Condominium associations and planned developments are required to carry insurance as set forth in their governing documents.

HOA boards have duties related to insurance that include purchasing policies that protect against several risks. What must be insured and at what levels are determined by the association's governing documents, California law, and prudent business judgment. Following are the types of insurance carried by most associations:

  • Directors & Officers Liability
  • Commercial General Liability
  • Umbrella Liability
  • Property Insurance
  • Fidelity Bond - Crime Coverage
  • Workers' Compensation
  • Earthquake
  • Flood Insurance

Given that board members are not experts in insurance coverage, they should always consult with an experienced independent insurance broker who specializes in providing insurance to common interest developments.

Coast Management of California