Understanding HOA and Individual Condo Insurance Coverage in Washington State

Condominium residents typically rely on two primary insurance policies: one held by the Homeowner's Association (HOA) funded by owner dues, and an individual policy purchased by the unit owner, often called an HO-6 policy. These policies collectively cover the structure and personal property within both the common areas and individual units, but the specific coverage varies based on the HOA's governing documents. Generally, the HOA insurance covers exterior elements and common areas, including building exteriors, hallways, roofs, and shared amenities, while the owner's policy covers the interior finishes and personal upgrades inside their unit.

HOA coverage categories include either covering the unit’s original finishes and structure or extending to some community property elements, with unit owners responsible for the HOA's deductible and any upgrades or modifications not part of the original construction. It is important for condo owners to review the HOA's governing documents or consult with the HOA president or property manager to clarify coverage details.

Insurance rates for HOAs have risen significantly since 2019, reflecting increased costs to cover community insurance needs and fund maintenance or upgrades. Condo insurance policies are specialized packages combining various coverages to protect owners against losses, but exclusions and coverage limits can vary widely. Prospective policyholders should consult their insurance agents or brokers to understand the extent and limitations of their coverage.

Detailed knowledge of the interplay between HOA and individual condo insurance policies is essential for managing risk and ensuring adequate protection. Annual HOA policy renewals provide unit owners with certificates of insurance outlining coverage limits and deductible amounts, helping owners stay informed. Understanding these nuances aids in filing claims effectively and in aligning coverage with personal and community risk profiles.

Condominium insurance remains a complex but critical aspect of property ownership, and both HOA boards and individual owners benefit from clear communication and consistent review of insurance provisions. This knowledge supports compliance with homeowner association policies and enhances financial planning for insurance expenses in the condo living environment.