Individuals who serve as volunteers or directors for non-profit organizations should not be misled about their personal exposure to claims from that activity and the limited liability protection available on homeowners and personal umbrella policies.

Neither should they rely on immunities and limitations provided by Texas laws. Immunities, as a defense, must be presented in court by an attorney when one is sued for a perceived breach. Immunities do not provide defense costs, and legal defense in civil court comes with a price. That is why all Association Boards carry Directors and Officers Liability insurance.

D & O Liability coverage is designed to indemnify and defend directors, officers and volunteers for their work on behalf of the association. For most Association Boards a minimum limit of 1MM is recommended. Larger associations can and do carry higher limits.

D & O coverage is specifically designed to protect volunteers. However, associations are subject to many risks and damages associated with property ownership and maintenance. An HOA master policy program usually includes a package of the following basic policy components: general liability, directors and officers liability, hired and non-owned automobile liability, fidelity and umbrella liability policies.

If you are working with a management company, you will be able to get advice on the specific coverages your HOA needs, given your particular circumstances. If you don’t have an experienced management company, we recommend consulting an insurance company specializing in HOA insurance to help you determine the right mix of policies.

Download a descriptive Glossary of the components of an HOA Master Insurance Program and Umbrella Policy coverage to gain abetter understanding of insurance coverage from a qualified HOA insurance professional.