Insurance HOA, What you need to know before you buy it.

Knowing how to create a policy for an HOA is important for the care and security of your condos assets. Management of condominium regulations and understanding the risks involved with insurance needs, financing, operating accounts and emergency funds, can be an overwhelming task. Approaching a HOA expert can help you turn this exercise into a positive learning experience.

One of the most relevant points to help you decide on an appropriate insurance program are:

What can a condominium owner's insurance policy include?

Insurance for condo owners typically covers losses and liabilities involving possessions and individuals within condominium units.

A condominium owner's insurance policy can range from protection for your personal belongings against covered losses, coverage for damage to the interior of your unit, additional living expenses. Protection of liabilities in the insurance policy of a condo association can help cover costs, among others.

Homeowner Associations in Mexico deserve and expect the best service for their maintenance fees, which includes paying for HOA's construction/association policies to protect towers and communal areas.

This significant annual amount should provide more than just HOA coverage. Complete coverage should include specialized risk management services that an insurance broker, with this specific type of experience, can provide by managing the insurance program; and with a commitment to working as a permanent consultant.

Important points to follow:

1. Buy your policy from an HAO insurance expert. 

Your insurance broker should review your association's CC&R to understand the scope of the association's responsibility. If the broker does not request the association's governing documents, he is the wrong person to write the master policy.

Once the decision has been made about the risks that will be transferred from the Master Association to the Master Policy of the condominium, we will negotiate with the best insurer that will meet the requirements of the Master Association and Novamar for the realization of claims and customer service.

2. What is CC&R? Conventions, Conditions, and Restrictions.

Agreements, conditions, and restrictions (CC and R) are limits and rules that a builder, developer, neighbor association, or homeowner association places in a housing or condominium complex group. By living in a house or condominium that is restricted by CC&R, an owner waives certain freedoms to be part of a shared community.

For example: Most condo building associations have smoking restrictions, parking rules and noise level, aesthetic guidelines for paint color, height restrictions, and minimum and maximum square foot requirements. Sometimes, buyers can access the documents before making an offer, but in most cases, buyers get a complete list of CC&R and community restrictions immediately after signing the purchase and sale agreement Initial.

3. Annual face-to-face review.

At NOVAMAR INSURANCE our main objective is working with the management and the HOA Board. We focus on the safety of the condominium and the risk management of daily activities to avoid and control perils and to be prepared for phenomena by providing owners with contingency plans.

It is important that you protect your association as well as to hire a qualified and specialized insurance broker so that you are able to be understand what you need to protect owners and their property.

Contacting a HOA policy specialist, who is an expert on the problems that may arise in owners' associations, is the main objective before buying any HOA policy.

Novamar Insurance Mexico is here to provide peace of mind for our customers by providing long-term security for  client investments.

We are specialized in serving  International Corporations and have more than 30 years of experience working with finance officers and risk managers.