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“Best HOA insurance company” is a phrase that requires some unpacking.
Unlike personal auto or homeowners insurance, HOA insurance is a specialty commercial product.
The carriers, programs, and brokers that serve community associations are a distinct segment of the insurance market – and the way coverage reaches an HOA board is fundamentally different from how an individual homeowner shops for a policy.
Read on to learn how HOA insurance is structured and what a complete coverage program should include. We’ll also look at which carriers and programs are widely recognized in the community association space, and how to find a qualified broker – including specific guidance for California and Florida, where the HOA insurance market is most complex.
Carriers are the companies that actually underwrite policies and pay claims. They bear the risk.
In the HOA space, major commercial carriers include Travelers, Chubb, The Hartford, State Farm (commercial division), and Philadelphia Insurance Companies (PHLY).
Most of these carriers don’t sell directly to HOA boards – they work through brokers and program administrators.
Managing General Agents (MGAs) and program administrators design, package, and administer specialty insurance programs on behalf of carriers – but don’t bear the risk themselves. In the HOA space, program administrators are particularly important because most standard carriers don’t have community-association-specific expertise.
Program administrators handle the underwriting details, coverage structure, and HOA policy administration and condo association programs.
The carriers provide the paper and pay the claims; the program administrator provides the HOA expertise. Well-recognized HOA program administrators include Kevin Davis Insurance Services (KDIS), McGowan Program Administrators, and Distinguished Programs.
Brokers represent the insured – the HOA – not the carrier. They shop the market across multiple carriers or programs to find appropriate coverage. Independent agents may represent one or more carriers but are not exclusively tied to a single company.
For most HOA boards, working with a broker or independent agent who specializes in community association insurance is the standard best practice.
HOA insurance is complex: master policy type, coverage limits relative to CC&Rs, deductible allocation, D&O scope, and state-specific requirements all require specialist knowledge that a general personal lines agent typically doesn’t have.
The most important factor in any insurance decision is whether the carrier can actually pay claims when they occur. Two primary rating agencies evaluate carrier financial strength:
Before placing coverage with any carrier, confirm their current AM Best rating directly on the AM Best website. Ratings can change – and a financially weakened carrier is a governance risk, not just an insurance risk.
A complete HOA insurance program should address the following coverage categories. The table below distinguishes required components from recommended additions:
| Coverage Type | Status | What to Confirm |
|---|---|---|
| Commercial property | Required | Covers building exteriors, common areas, and association-owned equipment at replacement cost – not actual cash value |
| Commercial general liability (CGL) | Required | Minimum $1M per occurrence; California mandates $2M–$3M depending on community size |
| Directors & Officers (D&O) liability | Required | Protects board members from governance-related claims; minimum $500K–$1M recommended |
| Crime / fidelity coverage | Required | Bond equal to reserve fund balance plus 3 months of assessments is the standard guideline |
| Workers’ compensation | Required if HOA employs staff | Required when the association directly employs maintenance, landscaping, or administrative personnel |
| Equipment breakdown | Strongly recommended | Covers HVAC, elevators, boilers, generators, and other mechanical systems serving common areas |
| Umbrella / excess liability | Strongly recommended | $5M or more for most associations; higher for communities with pools, elevators, or significant amenities |
| Cyber liability | Consider | Covers data breaches involving owner and resident personal information maintained by the association |
| Flood rider | Location-dependent | Not included in standard policies; critical for coastal and flood-prone communities |
| Earthquake rider | Location-dependent | Not included in standard policies; essential in California, Pacific Northwest, and other seismic zones |
| Employment Practices Liability (EPL) | If applicable | Relevant when the HOA employs staff and faces potential discrimination or wrongful termination claims |
Regardless of which carrier or program an association uses, boards should confirm:
HOA insurance is a specialty product. A carrier or program administrator that exclusively or primarily serves community associations understands the coverage nuances of CC&Rs, bare walls vs. all-in policy types, reserve fund adequacy, board liability exposure, and deductible assessment pass-through in ways that a generalist carrier typically does not.
When evaluating any program, boards should ask:
J.D. Power’s 2026 U.S. Property Claims Satisfaction Study provides the most current independent benchmark for how carriers handle property claims.
The study covers personal lines property claims – not commercial HOA claims specifically – but carrier claims culture in personal lines tends to correlate with commercial claims behavior.
| Carrier | J.D. Power 2026 Score | Notes |
|---|---|---|
| Amica | 773 / 1,000 | #1 overall – highest in the study |
| The Hartford | 756 / 1,000 | #2 overall |
| Chubb | 744 / 1,000 | #3 overall; also led commercial property claims in J.D. Power’s 2025 business study |
| Industry average | 697 / 1,000 | Benchmark for comparison |
The terms are often used interchangeably but represent meaningfully different relationships:
| Insurance Agent | Insurance Broker | |
|---|---|---|
| Represents | The insurance carrier | The insured (the HOA) |
| Can bind coverage? | Yes – has carrier appointment | No – must submit to carrier to bind |
| Product access | One or a few carriers | Multiple carriers across the market |
| Compensation | Commission from carrier | Commission from carrier; may also charge client fee |
| Best for HOA? | Yes, if the carrier has a specialized HOA program | Generally preferred for complex associations needing market comparison |
For most HOA boards, an independent broker or independent agent with access to multiple community association programs is preferable to a captive single-carrier agent.
HOA insurance needs are specific, and the best-fit carrier varies significantly by community type, state, claims history, and amenity profile.
As of 2024, there are approximately 1.4 million insurance agents, brokers, and service employees in the United States, operating through roughly 39,000 independent insurance agencies.
Independent agents and brokers place approximately 61.5% of all property/casualty insurance in the country, according to the Big “I” 2025 Market Share Report.
The subset specializing in community association and HOA commercial insurance is significantly smaller than the broader market. Most HOA boards will work with regional independent agencies or specialty brokers – not the major global brokerage firms that serve Fortune 500 companies.
For HOA and most commercial insurance, the carrier pays the broker’s commission – not the association directly. Commissions are built into the premium the HOA pays and are calculated as a percentage of the annual premium.
In some cases, brokers charge a fee-for-service arrangement in lieu of or in addition to commission. If a broker charges a client fee, it must be disclosed and agreed upon in writing. Boards should ask any broker directly: “How are you compensated on this policy, and what is your commission or fee?”
A Broker of Record (BOR) Letter is a written statement from the association authorizing a specific broker or agent to represent it with its current insurer. Changing brokers requires a new BOR. Boards should understand this before signing with any broker, since the BOR creates an exclusive representation relationship for the policy term.
Industry guidance from community association management sources recommends beginning the insurance renewal process approximately 120 days before the policy expiration date. This allows time to obtain multiple quotes, review coverage changes, and address any underwriting questions before the current policy lapses.
For budget planning: boards should anticipate approximately a 15% increase in premiums as a baseline planning assumption, with a realistic range of 7–20% depending on market conditions, claims history, and location.
HOA boards managing insurance disclosures, renewal documentation, and homeowner communications can centralize all of it in HOA Start.
Disclaimer: This content is provided for informational purposes only and does not constitute legal or financial advice. HOA insurance requirements and carrier availability vary by state. Consult a licensed insurance professional for guidance specific to your community and situation.
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