Insurance included in the HOA fees.

[Anonymous]

I just talked to the realtor of a subdivision that I'm interested in.  She said that the homeowner's insurance was covered in the monthly fees.  All I would need would be renters insurance.  Anyone heard of this before?  It's good in the sense that it explains why the HOA fees are so high.  But I have never heard of this.

[teton]

If I understand it correctly, HOA fees typically include common insurance. This would cover the roof needing repair or something like that involving the common parts of the housing units. You would be responsible for repairs, etc. within your unit.

[MattH]

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@teton wrote:
If I understand it correctly, HOA fees typically include common insurance. This would cover the roof needing repair or something like that involving the common parts of the housing units. You would be responsible for repairs, etc. within your unit.

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In the case of my condo, the "Master Policy" covering the common areas and the structure is bought by the Owners' Association (and therefore paid out of common fees).  I have a unitowner's policy for which I pay State farm for everything within the walls of my unit.  Also, I believe my unitowner's policy would cover my liability for damage to another unit: for instance suppose I fail to fix a plumbing problem within my unit that causes water damage to a neighboring unit and I am therefore liable to them for the damages.

In the case of a common disaster, such as if the place burns down, I believe the Master Policy would pay for rebuilding the foundation, exterior, and so forth but my Unitowner's policy would cover interior finishing within my own unit and also stuff within my unit such as furniture and personal property.

One lawyer friend suggested when we bough our unit we inquire who carries the Master Policy and consider getting Unit Owner's coverage from the same company so there would be less scope for bickering between companies in the event of a disaster over who pays for what.  As it turned out, the company that had the Master Policy on our complext doesn't offer unitowners' policies so that wasn't possible.,