Owning a home means that you are going to need home insurance; however, these needs are going to vary depending on what type of home you are living in, especially in an HOA type of situation. This is because in an HOA, the association will have some insurance coverage for the property while you need to cover the rest. Here are four things you should know specifically about this:

  1. A Single-Family Home is Different Than a Multi-Family: If you live in a single-family home without a homeowners association, you are still going to need the traditional homeowners insurance since the HOA only covers damage to the community, not your dwelling at all. However, if you live in a multi-family home, you are going to just need insurance for the interior of the home, such as the flooring, kitchen, and furnishings. 
  2. Accept Loss Assessment Coverage: When you live in multi-family housing, you will have the option to purchase loss assessment coverage. What this does is it covers the out-of-pocket expense you would have to pay if your HOA did not have sufficient coverage to cover damage to the exterior of your unit. You will be covered for this with your own insurance without having to pay out-of-pocket. 
  3. You Will Have to Have a Certain Personal Liability Amount: Most likely, if you live in multi-family housing, you will have to have a certain amount for personal liability on your own homeowners insurance policy that your HOA will address when you purchase your home. This is because of shared walls. If there is a fire or flood, it probably won't only affect your home, but also those who live right next to you or above or below you. For this reason, you need liability coverage in order to protect your neighbors. 
  4. Review HOA Insurance: Finally, to be on the safe side, you want to review what is covered by the HOA's insurance coverage. This way, you better understand what you need to have coverage for to ensure that you are fully protected. You might consider documenting the HOA's insurance coverage and bringing it to your insurance agent to go over the terms since it can be confusing. This way, you know exactly what you need. 

Knowing these four things about HOA and homeowners insurance can definitely help you save a great deal of money and stress knowing that you are going to be fully protected.