Illinois HOA Insurance

Are you an HOA looking for proper insurance coverage in Illinois?

Balsiger Insurance has over thirty years of experience in finding homeowners association insurance, condo complex insurance, and apartment building insurance.

Forget about quotes from one carrier, we are an independent insurance broker which means that we work with more than one insurance company.

Contact us to find out why you should work with us for homeowner’s association insurance coverage. We provide superior customer service, and know what we are talking about. Don’t leave your Illinois HOA, apartment, or condo complex under insured. Talk with us about getting the right insurance coverage right away.

Balsiger Insurance is an insurance agency headquartered in Nevada, with office in Nevada, California, and Texas, USA.

Directors and Officers Liability Insurance

Directors and officers liability insurance (D&O) protects the personal assets of HOA board members from lawsuits related to their management decisions. It covers defense costs for non-monetary claims, breach of contract, and other board decisions. Without D&O insurance, the board members could be financially burdened by legal expenses even if the lawsuits are dismissed.

The D&O policy covers all board members and can also cover employees and committee members of the HOA. Determining the right amount of D&O coverage involves looking at the size and complexity of the HOA, which affects the policy limits and premium costs.

D&O insurance helps attract and retain good board members by giving them protection against personal financial loss.

Additional Insurance Coverages for Illinois HOAs

While the required insurance coverages are the foundation of an association’s insurance program, additional coverages can provide extra protection against various risks. Homeowners associations should consider additional coverages like workers’ compensation insurance, umbrella insurance, and cyber liability insurance to address specific risks and have a broader safety net.

First, let’s start with workers compensation.

Workers Compensation

Workers’ compensation insurance is essential to protect the association and its workers against work-related injuries. This insurance covers medical costs for employees injured on the job, so they get the proper care without placing a financial burden on the association.

Workers compensation insurance protects the association from liabilities for employee injuries and maintains a safe work environment.

Umbrella

Umbrella insurance adds an extra layer of liability protection that goes beyond the limits of the standard policies. It protects against big claims that exceed the limits of the primary liability coverages. An umbrella policy increases liability coverage and gives you extra peace of mind and financial protection.

Umbrella insurance is excellent for covering significant incidents that the standard policies don’t fully cover.

Cyber Liability

In the digital age, cyber liability insurance is essential for HOAs to protect against data breaches and cyber threats. This type of coverage protects against financial loss from cyber attacks or data breaches on the association.

Since we rely on digital systems, cyber liability insurance is key to defending against cyber risks and data security.

HOA Master Policy

The HOA master policy is part of the insurance program within the homeowners association; it covers the common areas and shared spaces. This policy covers property damage, loss, and liability claims for shared spaces and the exterior of the building. The HOA master policy defines the scope of coverage and affects the insurance needs of the association and the individual unit owners.

Now let’s look at the types of coverage in the HOA master policy and bare walls vs all in.

Coverage

The HOA master policy has many coverages to protect the community and its residents. These are personal injury, property damage, personal property, commercial auto, home safety, crime insurance, and replacement costs. By covering so many kinds of protection, the master policy makes sure the common areas and shared spaces are well covered and reduces the financial and legal risk to the association and its members.

It also affects individual unit owners by defining what is covered under the association’s policy and what they need to insure themselves.

Bare Walls vs All-In

Understanding the difference between bare walls and all-in is essential for any homeowners association. Bare wall coverage only covers the exterior of the building; unit owners are responsible for ensuring everything inside their units, including fixtures and finishes.

All-in coverage covers the entire unit’s interior fixtures and finishes, including built-in appliances and any improvements or alterations made by the unit owner. This broader coverage reduces the insurance burden on individual unit owners but comes at a higher premium.

How to Choose the Right HOA Insurance Broker

Choosing the right HOA insurance broker is key to getting the proper coverage. A good broker is an intermediary between the client and the insurance company, helping to navigate the policy options and make sure the association’s needs are met. Make sure the broker has experience with community associations and specific insurance requirements.

Knowledge of local regulations and industry-specific needs is also essential for compliance and better coverage terms. Let’s look at the key things to consider when evaluating a broker and comparing quotes.

Expertise

When evaluating an insurance broker, consider their experience with homeowners associations and knowledge of specific insurance requirements. A broker’s experience with community associations can make a big difference in their ability to provide customized insurance solutions.

Ask about the broker’s track record, how many associations they have worked with, and their success in getting better coverage. Client feedback and the broker’s reputation in the HOA industry are also essential to measure their performance.

Quotes

Get multiple quotes from different brokers to compare policy terms and costs side by side. Focus on the coverage differences, not just the premium, when comparing quotes. Make sure each quote is for the same coverage levels so you can compare apples to apples.

Read the exclusions and limitations, as they can have a significant impact on the coverage.