HOA & Community Association Insurance

HOA insurance is the master insurance program a homeowners, condominium, or townhome association buys to protect shared buildings and common areas, the board, and the association's funds. It combines commercial property, general liability, directors and officers, fidelity and crime, and umbrella coverage, sized to the community's unit count, amenities, and governing documents.

Who we insure

Pro Insurance Group places association programs from our offices in Elgin and Huntley, Illinois, and writes communities in 40+ states. The core program is the same for every association type; what changes is the master policy form, the limits, and which carriers want the account.

Condo association insurance

Condo association insurance is the master policy a condominium board carries for the building, common elements, and the association itself. The key decision is how far the property coverage reaches into the units. A bare-walls policy stops at the drywall and leaves fixtures, cabinets, and flooring to each owner's HO-6. A single-entity policy covers the unit as originally built. An all-in policy covers original and owner-installed improvements. Your declaration decides which form applies, and a mismatch between the two is a gap we check for on every condo renewal.

Illinois law sets the floor for condominium associations. Section 12 of the Condominium Property Act requires the coverages below.

Source: 765 ILCS 605/12, read October 2026. It applies to condominium associations. Your declaration and your lender can require more.

Full detail on forms, limits, and pricing: condo association insurance and our guide to what condo association insurance covers.

HOA master policy

The HOA master policy is the association-owned property and liability policy that insures shared structures and common areas: roofs, exterior walls, clubhouses, pools, roads, fences, and the grounds. It is written as bare-walls, single-entity, or all-in, and that choice sets what every owner must insure on their own policy. The master policy carries the association's commercial property limit, its general liability limit, and usually equipment breakdown for elevators, boilers, and shared HVAC.

Boards should confirm three things at every renewal: the building valuation matches current replacement cost, the deductible and any loss assessment language is understood by owners, and the form matches the declaration. For a plain-English walkthrough of what the master policy covers and who pays what, read what an HOA master insurance policy covers.

HOA board D&O insurance

Directors and officers coverage defends volunteer board members, committee members, and the manager against claims of mismanagement, breach of fiduciary duty, discrimination, wrongful enforcement of rules, and bad decisions made on the association's behalf. A general liability policy is not built for these claims, and they are often brought by an owner who disagrees with the board.

The Condominium Property Act requires an Illinois condominium board to obtain D&O coverage that includes defense of non-monetary actions, breach of contract, and decisions about the placement or adequacy of insurance (765 ILCS 605/12). We also look for defense costs outside the limit and prior acts coverage when a board changes carriers. See directors and officers insurance, the most common HOA D&O claims boards face, and whether Illinois HOA board members need D&O insurance.

Fidelity and crime coverage for association funds

Fidelity (crime) coverage reimburses the association when a board member, treasurer, manager, or management company employee steals or misappropriates reserve or operating funds, and it can be extended to forgery, funds transfer fraud, and social engineering losses. Illinois requires a condominium association with 6 or more units to carry a fidelity bond for the full amount of association funds and reserves, covering the managing agent and its employees (765 ILCS 605/12). Fannie Mae requires fidelity or crime coverage for most condo projects with more than 20 units. Other common interest community associations with 30 or more units must carry fidelity insurance under the Common Interest Community Association Act (765 ILCS 160/1-55).

Two details matter: the policy must cover the management company and its employees, not just the board, and it should respond to computer and wire fraud. Review the losses we see most often in common HOA insurance claims.

Umbrella coverage for associations

A commercial umbrella adds liability limits above the general liability, auto, and sometimes D&O policies. Pools, playgrounds, clubhouses, and shared roads create the kind of injury claims that can exceed a $1,000,000 primary limit, and a shortfall can fall on the owners through a special assessment. Limits are chosen to fit the community's size and amenities, and umbrella coverage usually costs less per dollar of limit than the policies beneath it.

What drives HOA insurance premiums

How much HOA insurance costs by community size

There is no standard price for an association. The premium follows the replacement cost of what the association insures, the unit count, amenities, roof age, and claims history. A single building under 25 units and a high-rise with a pool and elevators are priced as different risks, by different carriers. Our HOA cost guide walks through typical ranges by community size, and the fastest way to a real figure is a quote on your own buildings.

Association coverage we specialize in

Every community type carries the same core program, sized differently. Explore the option that fits yours.

Why every HOA board needs association insurance

A community association is a nonprofit corporation, and its board members carry real personal and financial exposure. State law and most governing documents require the association to insure shared property and protect owner assessments. According to the Community Associations Institute, the vast majority of community associations are governed by volunteer boards, which makes directors and officers (D&O) coverage essential rather than optional.

A complete program ties together commercial property, general liability, and commercial umbrella limits so a single large claim does not fall back on the membership through a special assessment. Boards that understand how the HOA master policy interacts with individual unit-owner policies place better coverage and avoid costly gaps. For Illinois-specific board duties, see our guide to HOA insurance requirements in Illinois, and review the most common D&O claims boards face.

Managing rental units rather than an association? Our habitational and landlord insurance program covers apartment buildings and income property owners.

Can HOA board members be sued personally?

Watch how personal liability works for Illinois HOA and condo board members, and where directors and officers coverage steps in.

What our clients say

Why Pro Insurance Group

HOA insurance FAQs