Insurance for associations
Associations run on volunteers and other people's money. The coverage follows that: the property you share, the decisions your board makes, and the money somebody has to handle. That goes for an HOA, a condo association, a church or a club.
What associations usually carry
- Master policy
Covers the property everyone shares and the association's liability. Each owner's own policy covers their belongings and, depending on your documents, their unit's improvements.
For example A pipe bursts inside the clubhouse wall and ruins the floor.
- Directors and officers
Protects board members and officers when someone claims they made a bad decision running the organization.
For example An owner sues the board over how it handled a fence rule.
- Crime and fidelity
Covers the association's money if an employee or volunteer steals it.
For example The treasurer quietly moves reserve money into a personal account.
- General liability
Covers injuries and damage tied to your property and your events.
For example A visitor slips on the church steps during the Easter service.
- Abuse and molestation
Churches and groups with youth programs need it spelled out, because ordinary liability policies may exclude or limit it.
For example A church adds it before starting a summer youth program.
- Volunteer accident
Pays set medical benefits when a volunteer gets hurt, without anyone having to prove the organization was at fault.
For example A volunteer cuts a hand at the spring cleanup day.
What state law says
Tennessee
- Under the Condominium Act of 2008, associations generally insure common elements for at least 80% of replacement cost and carry liability coverage for them. Source: law.justia.com
Kentucky
- The Condominium Act generally requires coverage on common elements for at least their actual cash value, plus liability coverage. It allows, but doesn't require, directors and officers coverage. Source: law.justia.com
Virginia
- Condominium associations must carry employee-dishonesty coverage of at least the lesser of $1 million or reserves plus a quarter of annual assessments, and never less than $10,000. Source: law.lis.virginia.gov
- Condominium associations must insure common property for full replacement cost and carry liability coverage. Source: law.lis.virginia.gov
- Property owners associations have the same employee-dishonesty requirement, with a $10,000 minimum. Source: law.lis.virginia.gov
Rules change. We checked these against the official sources in October 2026; call us before you rely on one.