One important subject within HOA communities is insurance.

HOA fees fund an insurance policy (sometimes called a ‘master policy’) that covers the common areas of the community. The master insurance policy usually covers damage caused by hazards such as fire, extreme weather and sometimes flooding and earthquakes. It may also protect homeowners from lawsuits, personal injury claims, and acts of fraud by those managing the HOA’s money.

A master policy differs from an individual homeowner’s insurance policy. Your own policy protects your property as well as the contents and interior of your home or condo unit.

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