Homeowners associations (HOAs) are common, and not just for condominiums and townhomes.Some single-family detached homes are located within an HOA neighborhood or community.When buying a new home, whether multi- or single-family, it’s important to understand the effects it can have on the kinds of insurance coverage you need.When you live in an HOA community, the HOA holds a master insurance policy.

As a member, you pay into the HOA and therefore the overall policy.You still have an obligation to insure what the master policy does not.Do not assume that something is covered by your homeowner association fees.  Read your HOA master policy to understand specifically what parts of your condominium complex are covered and what parts aren’t.Types of HOAsSingle-family communities – The HOA usually insures common areas such as parks, playgrounds, swimming pool areas and so forth.You are responsible for insuring your home.Condominiums – The HOA policy for condominiums insures most of your residence, but you are responsible for insuring the interior of your unit as well as your personal property.In an HOA community, if you own a single-family detached home you will need to own traditional home insurance.

If you own in a multi-unit building you’ll want to purchase condominium insurance.