Insurance Claim
A formal request submitted by the association to its insurance carrier for coverage of a loss or damage. Common insurance claims involve property damage from storms, fires, or water leaks; liability claims from injuries on common area property; and fidelity bond claims for employee theft. The association should document damage thoroughly, report claims promptly, and work with the insurance adjuster to ensure fair settlement. The board should understand deductible obligations and policy exclusions.
Example in Context
After a water pipe burst and flooded the lobby, the manager immediately documented the damage with photos, contacted the insurance carrier, and arranged for emergency water mitigation.
Related Terms
Frequently Asked Questions
When should an HOA file an insurance claim?
File a claim when damage exceeds the deductible and is covered under the policy. Report damage promptly — most policies require timely notification. Document everything with photos and written descriptions before making temporary repairs. Review your policy for specific reporting deadlines and exclusions. Consult your insurance agent or broker for guidance on whether to file.