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Community Associations Umbrella

In 1987 Distinguished Programs pioneered the country's first Real Estate Umbrella Liability purchasing group. Today our Umbrella programs are among the largest in the country - delivering high liability limits at extremely competitive prices. Our Association Umbrella program provides excess coverage over an insured’s underlying liability policies, including Directors & Officers Liability.



  • Limits from $1 million to $200 million
  • Admitted, A.M. Best A rated carriers
  • Competitive pricing and low minimum premiums
  • No shared limits
  • Automatic renewal process for most risks
  • One-step, easy online quoting and policy issuance
  • Superior level of claim service and support


  • Homeowners Associations (HOA)
  • Cooperatives (CO-OP)
  • Property Owners Associations (POA)
  • Commercial Condominiums
  • Condominium Associations (COA)
  • Planned Unit Developments (PUD)
  • Timeshares/Intervals
  • Mixed-use Condominiums


  • $1,000,000
  • $2,000,000
  • $5,000,000
  • $10,000,000
  • $15,000,000
  • $25,000,000
  • $50,000,000
  • $100,000,000
  • $200,000,000


  • No Assault and Battery exclusion
  • Crisis Response coverage
  • Broad Named Insured endorsement
  • No Sexual Abuse and Molestation exclusion
  • Unintentional Errors or Omissions
  • Limitation of coverage to specified locations endorsement - Newly acquired locations must be reported to and accepted by the company within ninety (90) days


  • Bodily Injury and Property Damage
  • Advertising Injury
  • Directors & Officers Liability for not-for-profit community associations
  • Host Liquor Liability
  • Discrimination
  • Personal Injury
  • Contractual Liability Auto Liability
  • Punitive or Exemplary Damages - Except those related to a certified act of terrorism
  • Employee Benefit Liability

Commercial General Liability (CGL) $1,000,000 per Occurrence/
$1,000,000 Personal and Advertising Injury
$2,000,000 General Aggregate per Location  
Commercial Auto Liability (AL) $1,000,000 Combined Single Limit
Employer’s Liability (EL) $500,000 Each Accident
$500,000 Policy Limit-Disease
$500,000 Each Employee-Disease
Employee Benefits Liability (EBL) $1,000,000 Each Occurrence or Each Claim
$1,000,000 Aggregate
Garage Keepers Legal Liability (GKLL) $1,000,000 Each Loss
Directors and Officers Liability (D&O)
(Not for Profit Community Associations Only)
*See Form Requirements Below
$1,000,000 Each Claim (Indemnity)
$1,000,000 Each Claim (Defense)
$1,000,000 Aggregate Each Association
Or
$2,000,000 Each Claim (Defense inside the limit)
$2,000,000 Aggregate Each Association

All primary insurers must have an AM Best rating of A-VI or better. However, we will provide coverage over Employers Liability placed with certified state funds and/or carriers with an AM Best Rating of B++ VI or better.

* Endorsement form Directors & Officers Liability on the Commercial General Liability policy is eligible only if the D&O has its own separate unimpeded limit.

*Directors and Officers Liability underlying policy must include Duty to Defend wording with regards to Defense.

The coverage information outlined here is a guideline only. Please refer to the actual policies for full terms, conditions, exclusions, and limitations. In the event of a conflict between this document and the actual policies, the policies will control.



Umbrella insurance for community associations – Homeowners Associations (HOAs), Property Owners Associations (POAs), Condominium Owners Associations (COAs), and others – provides extra protection once an association maxes out its limits on its underlying policies. This includes the association’s General Liability, Directors & Officers Liability, Commercial Auto Liability, Employers Liability and other primary policies. An Umbrella policy is triggered when the underlying coverages have been exhausted. It can be designed to be follow-form, mirroring an association’s underlying coverage while increasing its limits. In some cases, the Umbrella policy is broader than the primary policies.

The number-one reason for obtaining Umbrella insurance for a community association is to properly protect an entity in the event of a significant, unforeseeable loss. Lawsuit settlement damages and verdicts today can easily exceed$1-$2 million dollars, and underlying policies are not designed to respond to catastrophic losses. Here are some examples of the types of losses that could upend the financial health of an association:

  • A teenager became a paraplegic after he fell by the swimming pool area of a condo association. The association had a $2-million General Liability policy in place and no Umbrella coverage. The lawsuit filed by the child’s family resulted in a $20 million judgment. Each individual owner was assessed $80,000 to cover the verdict.
  • A HOA was found responsible for the death of one child and the traumatic brain injury of another when they fell through the ice at a community’s lake. The jury in the lawsuit found the HOA liable for the damages and rendered a judgment of more than $30 million.
  • A jury last year hit a Nevada-based condo association with a $10-million verdict as a result of a serious accident suffered by a child due to faulty playground equipment. The association only had $2 million in General Liability insurance and no Umbrella policy.
  • The board of a HOA in Arizona was sued for discrimination after the property manager claimed its new rule prohibited the unit owner from leasing to a family because they had children under age 16. The unit owner filed a lawsuit against the association and its manager, saying the new rule discriminated against tenants based on age and tied his hands in legally renting or selling the condo. The owner also presented emails in which the manager referenced the renters’ race. The plaintiff’s suit asked for damages in excess of $2 million.

Each of these lawsuits makes a strong case for why community associations need Umbrella coverage. A Umbrella policy provides a cost-effective way to provide higher limits, which will protect a community association from unforeseen liability losses, as well as help avoid the need for a special assessment should the association have insufficient coverage. 

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