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The role of the HOA in managing insurance claims for condos and co-ops

On Behalf of | Jun 3, 2024 | REAL ESTATE LAW - Condominiums & Cooperatives |

When a disaster, such as a fire or a storm, strikes a condominium or cooperative, the homeowners’ association (HOA) plays a crucial role in managing the insurance claims process. As a governing body, the HOA must ensure that damage to communal areas and shared structures is addressed promptly and efficiently. This includes filing claims with the insurance company, checking up on the progress and coordinating with contractors for repairs.

Understanding the role of the HOA

The HOA oversees the management and maintenance of a community of homes, such as condos or co-ops. They enforce rules, manage finances and maintain communal areas. When it comes to insurance, the HOA’s master policy usually covers the building’s structure and shared spaces. Individual unit owners are responsible for their own insurance to cover personal property and liability within their unit.

Filing the claim

The HOA has the duty of assessing the extent of the damage to the building structure or to communal areas. After the assessment, the HOA must file an insurance claim under their master policy. The HOA’s board of directors typically oversees this process, which can involve complex negotiations with insurance adjusters and contractors.

When to seek legal help

Insurance claims can be complicated, especially when they involve shared spaces and multiple parties. Sometimes, an insurance company may deny the HOA’s claims or disputes may arise over who is responsible for the damage, the extent of coverage and the value of repairs. In such cases, seeking legal advice can help clarify rights and responsibilities, and ensure a fair resolution.

The complexity of the HOA role

The role of the HOA in managing insurance claims for condos and co-ops is complex and involves several factors. While the HOA is responsible for the building’s structure and shared spaces, individual unit owners also have responsibilities. In case of a dispute or complicated claim, seeking legal help can ensure a fair outcome.


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