Recommended coverage requirements
HOAs should consider requiring homeowners to maintain:
- Personal liability coverage, often at least $300,000 to $500,000
- Loss assessment coverage
- Proof of insurance annually
- Notice of cancellation when available
The required policy depends on the type of community:
- For a single-family HOA, homeowners should typically carry an HO-3 homeowners policy.
- For a condominium association, unit owners should typically carry an HO-6 condominium unit owners policy.
- For a townhome community, the required policy depends on the HOA's governing documents and master insurance policy. Some owners may need an HO-3, while others may need an HO-6.