/hoa-insurance-faq

Does HOA insurance cover damage caused by homeowners?

Discover if HOA insurance covers damage caused by homeowners and learn how it affects your coverage options.

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Reviewed by:

D. Goren

Head of Content

Updated Dec, 6

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Does HOA insurance cover damage caused by homeowners?

 

Does HOA Insurance Cover Damage Caused by Homeowners?

 

In most communities, the HOA carries a “master insurance policy.” This policy covers the parts of the property the HOA is responsible for, such as roofs, exterior walls, hallways, and shared structures. Whether it covers damage caused by a homeowner depends on two things: what the HOA is responsible for and what type of damage occurred.

 

When HOA Insurance Usually Covers Damage

 

  • The damage is to common areas: If a homeowner accidentally damages something the HOA owns or maintains, such as a lobby wall or shared plumbing line, the master policy normally pays for repairs.
  • The cause is accidental and not due to neglect: For example, a kitchen fire in a condo that spreads to the building exterior is usually covered.

 

When HOA Insurance Does NOT Cover Damage

 

  • The damage is inside the homeowner’s unit: Items like floors, cabinets, interior walls, and personal belongings fall under the homeowner's policy (often called an HO-6 policy).
  • The damage is caused by homeowner negligence: Negligence means failing to take reasonable care. Examples include ignoring a long-term leak or failing to maintain appliances. In these cases, the HOA’s insurance may pay first, but the insurer or HOA can seek reimbursement from the homeowner.
  • The CC&Rs assign responsibility to the owner: CC&Rs (Covenants, Conditions & Restrictions) are the HOA’s main governing documents. They often state that owners are responsible for anything inside the unit’s boundaries, even if the HOA’s insurance steps in temporarily.

 

If HOA Insurance Pays, Can the HOA Charge the Homeowner?

 

Yes. Even when the master policy covers the damage, most HOAs can charge back the deductible or full cost to the homeowner if the owner caused the damage. This is usually spelled out in the CC&Rs.

 

What Homeowners Should Do

 

  • Carry your own HO-6 policy: This covers your interior items and your personal liability if you accidentally cause damage.
  • Ask the HOA what the “unit boundaries” are: This defines what is considered your responsibility versus the HOA’s.
  • Report damage immediately: Delays can be viewed as negligence.

In short, HOA insurance usually covers damage to shared property, even if a homeowner caused it, but the homeowner may still be financially responsible. Damage inside the unit is almost always the homeowner’s responsibility.

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