HOA Insurance Claims: A Practical Guide for Boards

When something goes wrong in your HOA or condo community - a burst pipe, hail damage, fire, or other costly loss - it’s not just about cleanup and repairs. The real work often starts with your insurance claim.

At RowCal, we know that navigating HOA and condo association insurance claims is one of the most high-stakes challenges boards face. A misstep can mean long delays, resident frustration, or out-of-pocket costs that could have been covered. This guide breaks down how the process works, how to avoid common pitfalls, and what best practices lead to faster recovery and stronger financial outcomes.

Understanding the HOA Master Policy

Before diving into the claims process, boards need a clear understanding of what their HOA master policy actually covers. This policy is maintained by the association and is separate from the HO-6 policies held by individual unit owners.

Typically, the master policy includes:

  • Building exteriors (roof, siding, exterior walls)

  • Shared infrastructure (electrical, plumbing, HVAC systems)

  • Common areas (hallways, elevators, stairwells, lobbies)

  • Amenities (clubhouses, pools, gyms)

  • General liability for incidents in shared spaces

There are two primary types of master policies:

  • Bare Walls Policy: Covers only the building shell and common areas. Owners must insure everything inside their unit.

  • All-In (Single Entity) Policy: Includes the unit's original fixtures and finishes, but excludes personal belongings and owner upgrades.

Knowing which policy your HOA carries is essential to understanding which claims fall under the association's responsibility versus the homeowner's.

The HOA Insurance Claims Process: Step by Step

When a covered event occurs, quick and coordinated action is key to maximizing your claim and minimizing damage.

1. Report the Incident Immediately

Start by notifying your insurance carrier and documenting the damage. Most policies require prompt reporting - and delays can jeopardize your claim.

  • Assign a point of contact (usually the property manager or a board member)

  • Take timestamped photos/videos

  • Prevent further damage if it’s safe to do so (e.g., shutting off water)

  • Notify affected residents

2. Review the Master Policy

Before assuming coverage, pull the policy and clarify:

  • What areas/damages are covered?

  • What exclusions or endorsements apply?

  • What is the deductible?

Understanding your policy helps set accurate expectations with residents and vendors.

3. Meet with the Insurance Adjuster

Your insurance company will send an adjuster to assess the damage. Having a representative from your association or management team onsite during the inspection can ensure nothing is missed.

Tips for a successful walkthrough:

  • Walk through all impacted areas

  • Provide a detailed incident report

  • Share photos, vendor estimates, and timelines

4. Coordinate Repairs

Act fast to avoid secondary damage. Once coverage is confirmed, move forward with restoration using trusted, insurer-approved vendors when possible.

  • Align work scopes with what the insurer has approved

  • Use vendors familiar with HOA claims and documentation

  • Keep residents updated throughout the process

Pitfalls to Avoid

Even well-managed associations can run into trouble during a claim. Here are the common pitfalls and how to avoid them:

1. Misunderstanding Coverage Boundaries: Don’t assume every repair is covered under the master policy. Review the declaration documents and speak with your broker to understand where the HOA's responsibility ends and unit owner responsibility begins.

2. Delayed Reporting: Waiting too long to report a claim can reduce your payout or cause the insurer to deny the claim entirely.

3. Poor Documentation: A lack of evidence (photos, receipts, reports) can hurt your case. Start gathering documentation as soon as the incident occurs.

4. Disputes with Adjusters: If there’s a disagreement over scope or valuation, consider hiring a public adjuster to advocate for your association. For legal conflicts, consult with an attorney experienced in insurance claims.

Working with Insurance Restoration Vendors

Standard contractors and insurance restoration vendors are not the same. Insurance restoration vendors specialize in:

  • Water mitigation

  • Fire and smoke damage

  • Mold remediation

They understand insurer expectations and are often part of a pre-approved vendor list. This helps streamline the claims process and ensures compliance with insurer documentation standards.

Why Competitive Bidding Isn't Always Used:

Speed matters. In emergencies like water or fire damage, waiting for bids can delay restoration and increase the risk of further damage. Insurers often prefer to work with vendors who can start work immediately and follow pre-set pricing structures.

Still, the board should:

  • Ask for itemized estimates

  • Monitor repair progress

  • Maintain transparency with residents on vendor selection and costs

Best Practices for Condo Association Insurance Claims

Here’s what separates successful claims from stressful ones:

1. Have a Claims Response Plan

Create a checklist and protocol in advance so your team knows exactly what to do after an incident. This should include:

  • Who reports the claim

  • How damage is documented

  • Who coordinates vendor access

2. Keep Accurate Records

Well-organized records support your claim and speed up the process. You will need to maintain:

  • Maintenance logs

  • Incident reports

  • Vendor contracts and repair histories

  • Copies of past claims

Digital storage through your HOA management platform makes this even easier.

3. Communicate Clearly with Owners

Residents don’t like surprises. Proactively explain:

  • What’s covered by the HOA vs. what isn’t

  • Timelines for repairs

  • Any financial impact or assessments

Frequent updates via email or your community portal will help to build trust.

4. Review Your Master Policy Annually

As property values rise and new amenities are added, your insurance coverage should evolve. Work with your broker each year to:

  • Update coverage limits

  • Consider additional endorsements (e.g. flood, earthquake)

  • Review deductibles and special assessment limits

Be Prepared for the Unexpected

Filing an HOA or condo association insurance claim is never fun - but it doesn’t have to be chaotic. With the right policies, protocols, and partners in place, your board can respond with confidence, minimize disruption, and protect your community’s long-term financial health.

At RowCal, we help associations plan ahead, respond quickly, and avoid the costly mistakes that can derail the claims process.

Need help understanding your master policy or creating a claims response plan? Let’s talk. We make HOA management easier, smarter, and more proactive.


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