HOA & Condo Insurance · Umbrella Insurance
When one million is not enough.
The general liability limit has not changed in decades while jury awards and medical costs have. An umbrella sits above General Liability, D&O and any auto liability and adds millions of protection for a fraction of the cost.
$5,000,000is the common limit and what most lenders and managers ask for
Each added millioncosts less than the one before it
After the primary paysthe umbrella pays the rest, up to its limit
What it does
What Umbrella covers, and what it leaves to another policy.
✓Covered
- Liability claims that exceed the General Liability limit
- Large D&O claims when the umbrella is written over D&O
- Hired and non-owned auto claims above the primary limit
- Defense costs once the underlying limit is used up
→Handled by another policy
- Anything the underlying policy excludes, unless the umbrella says otherwise
- Claims on a policy that is not listed on the umbrella
- The gap when an underlying limit is lower than the umbrella requires
- Property damage to the association’s own buildings
Try it
See it in numbers.
See how the layers stack.
Pick an umbrella limit. The umbrella only pays after the General Liability policy has paid its full limit.
$6,000,000Total liability protection for a single claim.
Read the full article
Read it →Umbrella Insurance for Associations: When One Million Is Not Enough
From our Coverage Explained series: what it covers, how the limit is set, and the questions to ask before your next renewal.
Questions boards ask
Answers from our FAQ.
How do we know if our crime limits are sufficient / what should our crime limit be?
Limits should meet federal lending guidelines (FHA/Fannie Mae), typically three months of assessments plus all reserve funds.
What is typically covered under the HOA’s Master Policy?
The master policy is designed to protect the Association’s shared interests. It generally covers:
Common Areas: Structures like clubhouses, pools, fences, and lobby areas.
Structural Elements: The “bones” of the residential buildings, including roofs, siding, and foundation.
General Liability: Protection against lawsuits if someone is injured in a common area.
Directors & Officers (D&O): Liability protection for the Board of Directors for the decisions they make on behalf of the Association.
Fidelity/Crime: Protects the Association’s funds from theft or embezzlement.
Depending on your Bylaws, the master policy may also cover the original interior finishes of your unit. We recommend checking
My unit is not worth what the carrier is saying. How do carriers determine coverage limits?
Carriers use RCEs to determine rebuilding cost (insurable value), which differs from market value.
What do we need to comply with current lending requirements?
Property (100% RC), Liability, D&O, and Fidelity/Crime coverage meeting FHA/Fannie Mae limits.
What can we do proactively to receive the best insurance rates?
The best way to secure competitive rates is through strong risk management and consistent property upkeep. This includes staying on top of maintenance, addressing potential hazards early, and taking steps to prevent claims—especially related to water, fire, and liability exposures. Regularly reviewing your coverage to ensure accurate valuations and appropriate limits also helps position your association favorably with carriers. Well-maintained properties with fewer claims are typically rewarded with better pricing and more coverage options.
Want a second opinion on your policy?
Send us what you have. We review it, show you the gaps in plain English, and there is no obligation. Email associations@myinsurancewarehouse.com or start a quote.