When common areas are damaged, underpaid claims lead to special assessments. Board members and owners: here's how to document and recover full value.
⚠️ HOA and condo association claims are underpaid by $75,000-$200,000 on average. Carriers exclude building components, lowball scope, and force special assessments. Proper documentation protects every owner.
Homeowners and condominium associations carry master policies covering common elements—roofs, siding, hallways, lobbies, elevators, pools, landscaping, building systems. When storm, fire, or water damage strikes these areas, the association files the claim. Too often, carriers underpay, leaving the HOA to fund the shortfall through special assessments on owners.
Common elements typically covered by the master policy:
Carriers use the same tactics on association claims as commercial: minimal scope, low pricing, and exclusion of components. The result: six-figure shortfalls that become special assessments.
Condo complex, storm damage—carrier excluded 3 buildings, estimated roof repair only
Complete roofing, siding, common area interior, landscaping across all buildings
Supplement avoided $117,000 special assessment on 84 units
Association claims require building-by-building, component-by-component documentation. Management and boards should insist on full scope—not sample-based estimates.
Document every structure: buildings, pool house, clubhouse, gates. For each, list damaged components with contractor estimates and photos.
Don't assume hallways, lobbies, and elevators are included. Carriers often exclude them. Document with contractor estimates and submit as part of the supplement.
When insurance underpays, owners pay through special assessments. Frame the claim in terms of owner impact: "Recovering $X avoids $Y per unit in assessments." This motivates boards to pursue full recovery.
Underpaid claims create a painful cycle: HOA receives $80,000, needs $200,000 for repairs, levies $1,400 per unit. Proper documentation and supplement submission can recover the $120,000 difference—eliminating the assessment entirely.
We provide documentation frameworks and supplement tools for association claims. Boards and unit owners using these resources commonly recover $75,000-$200,000 beyond initial offers—protecting every owner from unnecessary special assessments.
Don't let underpaid claims force unnecessary assessments. Get tools to document and negotiate HOA claims worth $50,000-$500,000+.
Start Your Claim ReviewMost association policies include an appraisal clause. When the HOA and carrier cannot agree on the amount of loss, either party can demand appraisal. Each selects an appraiser; the two select an umpire. The panel determines the amount of loss—and that figure is binding. For disputed claims in the $100,000-$500,000 range, appraisal often resolves the dispute when negotiation stalls.
Boards have fiduciary duty to pursue full recovery. Accepting a low offer without challenging it may expose the board to owner claims. Document the claim properly, submit supplements, and consider appraisal if the carrier won't negotiate in good faith.
HOA master policies typically cover common elements: roofs, siding, hallways, lobby, elevators, landscaping, pools, clubhouse, and building systems. Unit interiors may be owner responsibility depending on your governing documents. Check your declarations and CC&Rs.
The HOA or its management company files the claim on the master policy. Board members or property managers typically initiate. Unit owners can advocate for proper documentation if the association isn't pursuing full recovery.
Yes. When insurance underpays, HOAs often levy special assessments on owners to cover the shortfall. Proper documentation and supplement submission can recover the full scope, reducing or eliminating the need for assessments.
HOA and condo association claims are commonly underpaid by $50,000-$200,000. Carriers exclude building components, use residential pricing for commercial-scale repairs, and lowball common area scope. Supplements often recover 40-60% beyond initial offers.
Unit owners can request documentation, attend board meetings, and advocate for supplement submission. In some cases, owners may have standing to demand the association pursue full recovery. Consult your governing documents and state law.
Most commercial property policies include an appraisal clause. If the HOA and carrier cannot agree on the amount of loss, either party can demand appraisal—each selects an appraiser, who then choose an umpire. The panel's decision is binding on the dollar amount.