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HOA Management Company Charlotte NCHOA Management Company Charlotte NC
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Carolinas Leading HOA Management Company
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(877) 252-3327
help@mycmg.com

  • Home
  • Our Services
    • Community Management
    • Accounting/Collections
    • Maintenance/Violations
    • Board Education
    • Reserve Planning
    • Legal Assistance
    • Value Added Services
  • Why Cedar?
    • Our Message
    • Our Mission
    • Testimonials
    • Our Value
    • Answers
  • About Cedar
    • Company Facts
    • Our Staff
    • Memberships
    • Careers
    • Partners & Acquistions
    • Resources
    • Cedar Staff Login
  • Blog
  • Contact Us
    • Office Locations
    • Homeowner Central
    • Pay Dues Online

Why do HOAs Need Insurance

Both the North Carolina and South Carolina Planned Community Acts require homeowners associations to carry property and liability insurance from the time the first lot is sold. The property insurance, generally included in a comprehensive policy, should cover the common elements against all risks of direct physical loss, including fire and extended coverage perils like hail damage and explosion. At the time the insurance is purchased, the total amount after deductibles should not be less than 80% of the replacement cost of the insured property. This will cover common buildings and other commonly owned property. Liability insurance protects the association from damages due to bodily injury or property damage for which the association is legally liable. Not all causes are covered in standard liability insurance, such as injuries from motor vehicles, smoke or fumes, malicious prosecution, and injury to employees due to employment. Additional riders and policies can cover most of these exceptions. Most associations should have liability insurance of at least $1 million and an additional umbrella policy can raise a limit a basic policy cannot meet. The third type of insurance most HOAs carry is directors and officers insurance. This type of liability insurance protects the officers and directors of an association from personal liability suits brought by owners in the community or third parties. The policy can be included in a blanket commercial policy or on its own. With both types of liability insurance, it is important to note if the policy is for occurrence coverage or claims made coverage. An occurrence policy will cover an instance that happened during the period the policy was in effect, even if it happened after its expiration. Claims made policies cover events that happened during the period the policy was in effect and the claim is made before the expiration date. Some claims made policies also cover claims made during its effectiveness, even if the event happened prior to the date it went into effect. There are a variety of other insurances an association may wish to carry, such as flood insurance, workmen’s compensation, fidelity, and automobile insurance, depending on the needs of the association. Condominium associations are required to carry a master insurance policy as per the North and South Carolina Condominium Acts . This policy includes both liability and property coverage for the entire development, including the units. Meaning, in the case of catastrophic destruction, the building will be replaced as originally built. Unit owners should carry their own policies to cover their improvements and belongings as well as anything additional the master policy does not cover. Solid insurance policies will protect both the association and homeowners in events of disaster or liability claims. Always make sure policies meet regulations by consulting an insurance agent.

cedar video
  • Community Association Audit
  • Functions of an HOA Board of Directors
  • What is a Condominium Association?
  • Governing Documents for an HOA
  • Advantages of Professional Management
  • Management Options for an HOA
  • Why do HOAs Need Insurance
  • What is a Homeowner’s Association?
Our Community Association Management Locations
  • HOA Management Charlotte | 704-644-8808
  • HOA Management Rock Hill SC | 803-620-1388
  • HOA Management Asheville | 828-333-4404
  • HOA Management Hickory | 828-358-1245
  • HOA Management Winston-Salem | 336-793-0879
  • HOA Management Raleigh-Durham | 919-348-2031
  • HOA Management Columbia SC | 803-234-4444
  • HOA Management Greenville SC | 864-469-4937
  • HOA Management Mooresville | 704-235-4902
  • HOA Management Greensboro | 336-690-5001
  • HOA Management Charleston | 843-416-5038
  • HOA Management Hilton Head | 843-547-0206
  • HOA Management Myrtle Beach | 843-286-5545
  • HOA Management Wilmington | 910-782-1143
  • HOA Management Knoxville | 865-314-8562
  • HOA Management Gatlinburg | 865-314-8562
Recent News
  • Your Guide To North Carolina HOA Laws
    April 13, 2021
  • HOA Security Cameras: Maintaining Security And Privacy
    March 24, 2021
  • Should Your HOA Hire A Separate HOA Collection Agency?
    March 9, 2021
  • How To Make An HOA Candidate Statement For Board Nominations
    February 24, 2021

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Cedar Management Group
PO Box 26844
Charlotte, NC 28221

Phone: (704) 644-8808
Toll Free: (877) 252-3327
Fax: (800) 334-0526

Our General Office has move from 9500 Statesville Rd. to 10610 Metromont Parkway, Suite 204 Charlotte NC 28269