For those who own a home that is part of a homeowner’s association for the first time, our team at Community Management Insurance Group in Greensboro, NC, knows how confusing it can be to figure out what type of insurance you need. Protecting your home is as important as protecting your health through health insurance or covering your car through auto policies. If you’re unsure which type of insurance is right for your home, you’ll have an easier time deciding if you know what distinguishes them.
What Is HOA Insurance?
HOA insurance is paid through dues to a homeowner’s association. It can cover physical damage to the home and attached structures. It can also cover some liability-related costs and common areas the HOA shares.
Those not part of an HOA will not need to get HOA insurance. Some HOAs may require homeowners to purchase additional types of insurance. The head of your HOA should know what kind of home insurance you need to acquire.
What Is Homeowner’s Insurance?
Homeowner’s insurance covers an individual’s primary residence. Unlike HOA insurance, it is not commercial insurance. Depending on the policy’s specific terms, it can cover physical damage to the home, liability, and other expenses.
What’s the Difference?
Homeowner’s insurance is paid through HOA dues whereas an individual homeowner pays homeowner’s insurance. While homeowner’s insurance only covers one structure, an HOA insurance policy covers all the properties of an HOA. If you’re unsure which one is right for you, you should speak with a qualified insurance agent on our team.
For more information on HOA and homeowner’s insurance, call our Community Management Insurance Group team in Greensboro, NC.