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Understanding the Difference Between Insurance Coverage and Maintenance Responsibilities in a Community Association


As a homeowner in a community association, it’s essential to understand the distinction between insurance and maintenance coverage, as well as your responsibilities in both areas. Clarifying these differences can help you better manage your property, avoid unexpected expenses, and ensure a harmonious living environment.


What is Insurance Coverage?


Insurance coverage refers to the financial protection provided by an insurance policy against specific risks and damages. In a community association, there are typically two types of insurance coverage to consider:


  1. Association Insurance: This policy covers common areas and shared property, such as clubhouses, pools, and landscaping. It typically includes property insurance for physical damage, liability insurance for injuries that occur in common areas, and Directors and Officers (D&O) insurance to protect board members from personal liability.

  2. Homeowner’s Insurance: Individual homeowners are responsible for insuring their own units or homes. This insurance usually covers personal property, interior structures, and liability for incidents occurring within the unit. In some communities, it may also need to cover certain aspects of the exterior, depending on the governing documents.


What is Maintenance Coverage?


Maintenance coverage refers to the responsibilities associated with the upkeep and repair of property and common areas within the community. These responsibilities are generally divided between the association and the individual homeowners:


While every community association differs in terms of what is covered by the master insurance policy or what is an owner maintenance responsibility, below are common scenarios for community associations.


  1. Common Association Responsibilities:

  • Common Areas: The association is responsible for maintaining and repairing shared spaces, including amenities, landscaping, walkways, and parking areas. This ensures these areas remain safe, functional, and aesthetically pleasing for all residents.

  • Building Exteriors: In condo associations or townhome communities, the association often handles exterior maintenance, including roofs, exterior walls, and foundations.

  • Infrastructure: Maintenance of shared infrastructure such as plumbing, electrical systems, and elevators in multi-unit buildings typically falls under the association’s duties.

  1. Homeowner Responsibilities:

  • Interior Maintenance: Homeowners are responsible for maintaining and repairing the interior of their units. This includes plumbing, electrical systems, appliances, and fixtures within their homes.

  • Exclusive Use Areas: Areas that are designated for the exclusive use of a homeowner, such as balconies, patios, or driveways, may also fall under the homeowner's responsibility, depending on the community’s governing documents.

  • Minor Repairs: Homeowners are usually responsible for minor repairs and upkeep that do not affect the common areas or other units, such as replacing light bulbs or fixing a leaky faucet.

Key Differences and Overlaps


While insurance and maintenance coverage both aim to protect and preserve property, they do so in different ways:


  • Insurance: Provides financial reimbursement for covered losses or damages. For example, if a fire damages a clubhouse, the association’s insurance policy would cover the repair costs. Similarly, if a homeowner’s unit is damaged by a covered peril, their insurance would pay for repairs and replacements.

  • Maintenance: Involves the regular upkeep and repair to prevent damage and ensure the property remains in good condition. This includes routine tasks like cleaning gutters, painting, and landscaping, as well as more significant repairs like fixing a leaky roof.


Understanding the distinctions between insurance and maintenance can help homeowners navigate their responsibilities and avoid confusion. Here are some practical tips:


Practical Tips for Homeowners


  1. Review Governing Documents: Familiarize yourself with the community’s governing documents, including the Declaration, Bylaws, and Rules and Regulations. These documents outline the specific responsibilities of the association and homeowners regarding insurance and maintenance.

  2. Communicate with the Board: If you’re unsure about your responsibilities, don’t hesitate to reach out to your association’s board or management company for clarification.

  3. Maintain Adequate Insurance: Ensure you have sufficient homeowner’s insurance coverage to protect your property and personal belongings. Review your policy regularly and update it as needed.

  4. Stay Proactive with Maintenance: Regularly inspect and maintain your unit to prevent issues from escalating into costly repairs. Address minor problems promptly and keep an eye on areas that may require professional attention.

  5. Understand Emergency Procedures: Know the procedures for reporting emergencies or significant maintenance issues. This will help ensure prompt action is taken to mitigate damage and address concerns.


By understanding the differences between insurance and maintenance coverage and responsibilities, homeowners can better protect their investments and contribute to a well-maintained, thriving community.

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