Homeowners’ Associations (HOAs) carry insurance policies to protect shared community spaces, buildings, and sometimes even portions of individual units. But when damage or loss occurs, many homeowners and board members are left wondering, “What exactly happens during the HOA insurance claims process?”
In this article, we’ll go over the common procedure for filing a claim with your homeowner or HOA insurance, how California state law influences the process, and what homeowners and HOA boards can expect during this often confusing and difficult time.
What Is HOA Insurance?
HOA insurance, often referred to as a master policy, typically covers:
- Common areas (e.g., clubhouses, roofs, hallways)
- Structural elements of shared buildings
- Liability for accidents in common spaces
- Directors and officers (D&O) liability
- Some interior elements, depending on policy and bylaws
Every HOA insurance policy is unique, so you will need to refer to your governing documents and find appropriate HOA association insurance quotes for your community.
The HOA Insurance Claims Process: Step-by-Step
Whether it’s storm damage, a plumbing backup, or a fire affecting a shared structure, here’s a general outline of the HOA insurance process in California:
| Step | Action | Details |
| 1. Report the Incident | Notify your HOA board or property manager immediately. | Prompt reporting ensures the claim can be filed quickly and appropriately. |
| 2. Review Governing Documents | Check the HOA’s CC&Rs (Covenants, Conditions, and Restrictions). | These documents outline who is responsible for which damages, HOA vs. unit owner. |
| 3. Contact the Insurance Provider | The HOA board or property manager initiates the claim. | Most master policies require claims to be filed by the HOA, not individual unit owners. |
| 4. Inspection and Documentation | An adjuster inspects the damage and reviews supporting documents. | Photos, invoices, and repair estimates help the claims adjuster evaluate losses. |
| 5. Claim Evaluation | The insurer assesses what’s covered and the amount payable. | This may involve comparisons to deductible thresholds and exclusions. |
| 6. Resolution and Repairs | Once approved, payment is issued to begin repairs. | Depending on the policy, funds may go to the HOA or directly to contractors. |
Special Considerations Under California Law
California law has certain principles that apply to how HOA insurance operates:
- Civil Code Section 4775: It delineates maintenance obligations; that is, homeowners are generally responsible for their unit’s interior and associations’ common areas.
- SB 326 (Balcony Inspection Law): If you are an HOA, SB 326 requires that you inspect specific elevated structures in a complex, which could affect insurance claims involving decks or balconies.
- Disclosure laws: They require HOAs to disclose their insurance coverage summary to the members each year. This allows unit owners to know what is covered and what is not.
Tips for a Smoother HOA Insurance Claims Process
- Stay informed: Review the HOA’s insurance summary each year.
- Communicate early: If you experience damage, report it right away, even if you’re unsure who is responsible.
- Get your own coverage: Individual owners should maintain personal condo or HO-6 insurance to fill in any gaps.
- Keep records: Always document incidents with photos, dates, and any communication related to the damage.
When to Reevaluate Your Coverage
After a claim, it’s a good time for the HOA to revisit the insurance limits, deductibles, and risk exposure. Getting a new HOA insurance quote can help ensure the community is adequately protected without overpaying for unnecessary coverage.
Looking for Expert Help and an HOA Insurance Quote?
The HOA insurance process doesn’t have to be overwhelming. By understanding your rights, responsibilities, and the general timeline, both HOA boards and homeowners can navigate claims with confidence.
e360 Insurance services provides tailored insurance solutions for HOAs across California. Whether you need help navigating the claims process or want a competitive HOA insurance quote, our team is ready to assist.
Contact e360 Insurance Services today to get an HOA insurance quote.