The short answer is YES, because HOA dues normally will include the cost of whatever insurance
the HOA Board has decided to purchase.
The more accurate answer is Yes and No, because unless you read and understand the HOA's CR&Rs, you won't know what the HOA is required to insure, and what you as a unit owner are required to insure individually.
Most HOA insurers policies say they will cover the inside of your unit excluding your Personal Property IF the CC&Rs require them to, but many if not most CC&R's are not written that way. It's
common to read that unit owners are responsible for the interior of their unit (think "build-out of an empty shell), their Personal Property, their Loss of Use, and their Personal Liability. Having your
own HO6 policy allows you to choose those limits your want, as well as meet your lender's requirements (lenders often require more than you may want to buy for "built-in" items. Having your own policy allows you to make a claim and settle it with your own insurer independently from whatever decisions the HOA Board is making to repair the building. Having the coverage all with
one insurer make help them coordinate on a claim, but it really shouldn't matter.
The biggest mistake most of us make is not buying enough. Whether it's the HOA itself, or us as
individual unit owners with our HO6. I live on commissions, but I'm saying this out of experience,
not a desire to sell more. Most of us just don't like paying insurance premiums for coverage we
tend to never use. There's a trade off in our minds between what we need, and what we want. We
want it all, and we know we can't afford it all. The difference is while any clothes in your closet that will protect you wearing the wrong clothes for an event hopefully would only be embarrassing, but
failing to buy the right kind and amount of insurance will be financially devastating IF the worst case
scenarior happens to you. When bad things happen, they are often someone else's fault. but not
always. And if that someone else turns out to be YOU, not only is everything you've worked for on the line, but everything you haven't yet inherited or earned!
Call me if you want to get this right.
The insurance typically covers the exterior and common areas. An additional policy called an HO6 policy is sometimes required by a lender or is advised to get as a home owner. This policy covers the interior of your specific unit.
If you have further questions or would like assistance give ma a call at 415.336.8181 or email firstname.lastname@example.org
Happy house hunting!
George Langford - Associate
Climb Real Estate