“Bare Walls” Or Full Insurance Coverage for Homeowners Associations: A Discussion
“Bare Walls” Or Full Insurance Coverage for Homeowners Associations: A Discussion Oct 10, 2017 When it comes to running a homeowners association or condominium and all of the upkeep and operations associated with these types of properties, it is important to understand the ins and outs of insurance coverage and liability. For example, “bare walls” insurance plans are often discussed in associations that want to limit the cost of water damage claims because each owner (versus the homeowners association) restores their own unit interior (including cabinets, walls, and floor coverings, as well as other interior finishes). What Is “Bare Walls Coverage”? “Bare walls” coverage is a type of insurance coverage purchased by condo or homeowners associations which typically applies to communally-used features in buildings (such as entryways). Associations typically use costs that they charge in HOA fees to cover this type of insurance policy. However, it is the most limited type of coverage that an association can purchase. Individual unit owners are required to purchase their own insurance to cover anything that is damaged within their units (for example, toilets, appliances, etc.). The alternative type of insurance that an association can purchase is known as full or all-inclusive coverage (also known as “single entity coverage”). This applies to all the property on-site, including the individual units; however, it does not apply to unit owners’ personally-owned items, such as computers, clothing, etc. Single entity coverage is more commonly purchased by associations, as it also covers the cost of property improvements. Pros and Cons While some do not necessarily prefer a bare walls system because it has the potential to expose an association to damage if the owner does not obtain proper interior insurance (and thus does not properly restore a unit after water damage), others feel that it is the best way to equitably share the risk of damage to the interior of the property. Otherwise, too much responsibility could fall on the shoulders of the homeowners association and potential claims against its policy, which then raises premiums. The Importance of Individual HO6 Policies Regardless of which type of insurance policy your association goes with, individual unit owners should always have HO6 policies. In addition, associations can always obtain a modification or “endorsement” to their policy, which removes floor and wall coverings from its insurance coverage. Ultimately, homeowners associations should always discuss the pros and cons (costs and benefits) of each alternative with both their insurance brokers and legal counsel and each association should tailor their approach to their own individual needs. Dedicated Homeowners’ Association Attorneys Serving Orlando, Sarasota, and Tampa HD Law Partners provides the knowledgeable, proactive homeowners’ association legal representation you need. “Bare Walls” Or Full Insurance Coverage for Homeowners Associations: A Discussion Contact us today to find out more about our services. Resource Tags: Florida Condominium and Homeowners’ Associations Fees, Florida Homeowners Insurance Lawyer, Florida Homeowners Insurance Lawyers Posted in HOA/Property Management, Homeowners Association, Homeowners Insurance | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us