Does home owner association fee cover insurance?

In most cases, the fees paid to a Homeowners Association (HOA) do not include home insurance. The fees are generally used to cover grounds maintenance and community upkeep, and may include termite or pest protection, but probably will not pay for the loss of the home itself. The exception to this, in many instances, are condos and other leased properties, which may include home insurance. Even in this case, the home insurance may not be sufficient to cover replacement of the home and most experts advise purchasing you own homeowners insurance or property insurance to supplement any insurance provided through HOA fees.

HOA fees are typically used to pay for services in the HOA community at large, and are not designed to handle individual needs. This means that roadways and community buildings are covered under HOA fees, but the home itself is the responsibility of the individual homeowner. Addtionally, your mortgage company may charge you for home insurance, but it is not the coverage you might expect. Mortgage home insurance is almost always paid out to the mortgage company when a claim is filed, limiting the losses of the mortgage company but offering nothing to the family of the home.

Even if your home is protected under HOA fees, the best course of action is get insurance from an independent company on your home. Make sure that the coverage includes your private property as well as the home, including your home furnishings, appliances, and even such items as your lawn mower or well pump if you have one. Don't leave the welfare of your home and family up to the dictates of chance, and make sure that any insurance you pay for is going to be beneficial to you if a claim must be filed.