HOA Meaning for Home Insurance

Dues for a homeowners' association (HOA) include hazard insurance for incidents that may occur in common areas. They may also include other forms of insurance.

Definition

HOAs charge dues to member homeowners for common expenses. These expenses can cover the cost of maintenance and repairs for common areas such as pools, playgrounds, walk paths and clubhouses, and they include liability insurance for accidents and injuries that may occur at common facilities.

Impact of Dues on Properties

Failure to pay HOA dues or fines can result in a lien placed against a home. In some states, such as Texas, these HOAs can foreclose on a home to pay the lien. A lien for unpaid HOA dues or fines must be paid before selling the home. HOA fines are not covered by homeowner's insurance.

Title Insurance

Violations of HOA covenants can result in forfeiture or reversion of the home's title back to the HOA. Additional title insurance endorsements can be purchased to cover properties in HOA title disputes.

Condos or Townhouses

When multiple homes share walls, such as in townhouses or condominiums, HOA dues may include homeowner's insurance for the entire development. This includes building insurance and liability insurance.

References

• "The Secret of Mortgage Lending Success"; Linda M. Williams and Roger Rothberg; 2008
• "Law of Title Insurance"; Barlow Burke; 2008
• "Your Money Rules for Financial Freedom"; Michael J. Laurence; 2005
• "Texas Homeowners Association Law"; Gregory S. Cagle; 2010

Resources

• "Don't Shoot Me...I'm Just the Real Estate Agent!"; Cari Lynn Pace; 2010