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Community Association Combo.

Your "One-Stop Shop" for Insuring Community Associations

Our Community Association Combo insurance program brings three separate policies together into one easy-to-complete online application with a single insurance company.

The Community Association Combo program is our "one-stop shop" for Umbrella, Directors & Officers (D&O) Liability, and Crime insurance coverages for not-for-profit community associations. The program was designed by veterans in the real estate liability insurance field who applied their expertise in the industry to deliver a unique combination of essential coverages that community associations need.

Key Advantages

  • Multiple products, through one easy, time-saving on-line application for quoting and policy issuance
  • Special discounted pricing for risks with 200 or fewer units
  • Over 20 years of experience serving the insurance needs of community associations
  • Underwritten with the financial strength of a top-tier insurance company
  • Competitive pricing
  • Unparalleled claims service

Eligibility

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

Insureds Include:

  • Volunteers
  • Trustees
  • Spousal and estate
  • Property management professionals
  • Committee members
  • Executives
  • Employees of the association
  • Builders and developers, as members of the board

Coverage & Limits

Umbrella Insurance

  • Covers a wide range of insureds, including past, present or future board members
  • Coverage limits from $1 million up to $200 million.  
  • No shared limits
  • No Assault and Battery exclusion
  • Crisis Response coverage
  • Broad Named Insured endorsement
  • No Sexual Abuse and Molestation exclusion
  • Limitation of coverage to specified locations endorsement
  • Unintentional Errors or Omissions

For more information on the Umbrella coverage, please click here.

Defense Expenses

  • Defense expenses are in addition to the limit of liability (when GAIG counsel is used)
  • Defense expenses are not subject to the retention (when GAIG counsel is used)
  • A duty to defend the association and its members
  • Defense for non-monetary damage allegations
  • Breach of contract coverage providing costs of defense for claims alleging an insured's breach of a third-party contract
  • No individual insured vs. individual insured exclusion

Directors & Officers Insurance

  • Covers directors, officers, trustees, volunteers, committee members, property managers and the association
  • First-dollar defense which means no deductible is applied to defend a claim
  • Defense coverage is outside the liability limit so the cost of defending a lawsuit will not erode the policy limits available to pay settlements
  • Broad definition of insured, including those performing property management services
  • EPLI is included within the coverage form up to the full limit at no additional cost
  • Cyber Liability for digital breaches of data, including credit monitoring for affected parties
  • Legal Concierge hotline provides insureds general advice from a nationally recognized and carrier-approved law firm

For more information on the D&O coverage, please click  here

Crime Insurance

  • Includes a managing agent endorsement and coverage for non-compensated directors and officers, managers, temporary and leased employees.
  • Can be designed to cover employee theft only or to also include coverage for: forgery or alteration, theft of money and securities inside the premises, robbery or safe burglary of other property inside the premises, outside the premises crime, computer fraud and money orders and counterfeit paper currency.
  • Limits start at $10,000 and can be increased up to $5 million. Various deductible options are available.

For more information on the Crime coverage, please click  here.

Each of the coverages under the Community Association Combo program – Umbrella, D&O, and Crime – is also available as stand-alone policies. With the Combo, an Umbrella discount is available.

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.

Insurers

  • Great American Insurance Group

Additional Programs to Consider

We took a look at the various exposures community associations face and put together a trifecta of coverages to help protect an organization’s bottom line. From the potential for a multi-million-dollar lawsuit stemming from a serious injury on the premises, to board disputes and allegations of discrimination and harassment that can jeopardize the assets of individual board members and the association itself, and employee theft that can drain the coffers of a community, our Community Association Combo insurance program is ready to respond with Umbrella, D&O and Crime insurance.

Umbrella Insurance

The principal purpose of an Umbrella policy is to protect the community’s assets from an unforeseen event, such as a tragic accident or loss in which it is held responsible for damages or bodily injuries. Umbrella insurance provides additional limits to supplement the insured’s primary liability policies. This is must-have coverage for associations, as without it, they can find themselves facing financial ruin. Just take a look at a couple of community association-related losses that occurred in the last several years emphasizing the need for Umbrella coverage:

  • Overgrown trees and shrubbery at a community’s entryway covered up a stop sign when two vehicles collided at the intersection seriously injuring both drivers. The community association was held responsible for the accident and liable for the drivers’ medical bills, which amounted to $5 million. The association’s Umbrella policy responded after its General Liability limits were reached.
  • A couple filed a lawsuit against their condo association’s board of directors alleging they were targets of threats, harassment and intimidation by an unlicensed contractor and the resident manager. According to the lawsuit, the community’s board of directors either directed or condoned the campaign of abuse. The jury found that the condominium association’s board of directors, its employees and agents violated state condominium laws and awarded the couple $4.45 million in general and punitive damages. The D&O policy’s limits were exhausted and the Umbrella insurance policy followed form and kicked in to pay the remaining amount of the judgment.

Directors & Officers Insurance

Common D&O claims for community associations include breach of fiduciary duty; failure to maintain common area(s); failure to follow the association’s bylaws or Covenants, Conditions, & Restrictions (CC&Rs); failure to give proper notice; failure to count votes or proxies; and unsuitable practices in hiring or firing of board members. D&O policies typically pay for costs that the association becomes legally obligated to pay as a result of a claim made during the policy period for “wrongful acts.” In general, a wrongful act is an actual or alleged act, breach of fiduciary duty, error, omission, misleading statement, or misstatement.

Some of the provisions to look for in a D&O insurance policy include:

  • Are defense costs outside the policy limits so that these expenses don’t impact the liability limits of the policy? If defense costs are inside the limit, a costly lawsuit could eat up much (if not all) of the association’s indemnity limit.
  • How is the duty to defend worded? If there is a potential claim, is the insurance carrier obligated to defend the association?
  • Does coverage apply to the property manager as an employee?

Crime Insurance

The average small employer experiences $120,000 in losses due to employee theft, with fraud conspiracy typically lasting between one and two years before being discovered. More than 40% of these types of losses result in unrecovered money. Following are several claims examples you may share with your insureds to underscore the extent of this exposure and the need for Crime insurance.

  • When summer ended, a trustee at a condo association did not remove the pool management firm from its payroll. Although the pool service ended, the trustee continued to write checks for the pool management business by forging signatures and cashing them for his personal use. When a new treasurer was hired and noticed the inconsistency in the payroll, the crime was identified.
  • Prior to opening a credit card online on behalf of a small 8-unit HOA, the treasurer did not obtain the members’ consent. The officer used the association’s credit card for personal needs for two years amounting to $35,000.
  • A former HOA manager stole $3.8 million from a Illinois condo association. She colluded with her ex to use false invoices for construction work to siphon funds from the multi-unit condo complex.
  • A board member embezzled $3.9 million while serving in a New York condo association.

In each of these cases, without Crime coverage, a community association would suffer financially. How much Crime insurance an association should purchase should be equal to the amount of funds that are accessible to, or controlled by, the board. When putting this coverage into place, have the insured conduct an internal audit of the accounts not only to be assured of the accounts but to also ensure the association is free of pre-existing fraud.

Purchasing comprehensive, tailored insurance coverage is vital if a community association is to minimize the adverse consequences of accidental loss and maintain its continuity as a business organization.

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