Protecting Your Property and Association with Community Association Insurance (PUD Insurance)

Condominiums, Planned Communities of single family homes or townhouses, Commercial Planned Unit Developments and Business Parks have the responsibility to their members and volunteered directors & officers to carry specific types of insurance that are written to protect those that live in or belong to the Associations.  This is generally referred to as Community Association Insurance, Planned Unit Development Insurance, or PUD insurance.

The various types of Community Association insurance we offer are:

  • Common Area Package Insurance is a very important type of community association insurance, which combines the following individual types of coverage into one comprehensive policy to save the association money:
  • Property Coverage for the association’s owned properties such as clubhouses, cabanas, pools, sports courts and other outdoor items
  • Commercial General Liability Insurance
  • Crime Coverage to protect the association’s money against employee dishonesty, forgery & alteration, computer and funds transfer fraud.  Non-compensated directors and officers, property managers and temporary and leased employees are all defined as “employees.”
  • Commercial Auto Coverage, including Hired & Non-owned Automobile Liability
  • Directors & Officers Liability Insurance, is another key type of community association insurance, which is essential to a volunteered Board of Directors.  Our policies can provide first dollar defense coverage and defense cost coverage outside the limit of liability.  Bonus coverage also includes EPLI (Employment Practices Liability) coverage and Property Managers are automatically insured on the policy.
  • Stand-alone Crime Coverage.  This type of community association insurance is typically for high limits ($500,000 or more).  We can also provide Excess Crime coverage over the limit on a Common Area Package policy.
  • Umbrella community association insurance , which will provide coverage over and above the underlying General Liability, Directors & Officers Liability, Automobile Liability and Worker’s Compensation Insurance with limits from $1 Million to $200 Million.  The Davis Sterling Act, Civil Code 1365.9 requires at least the following limits of liability insurance to provide civil liability protection to owners of the association:
    • At least $2,000,000 of Liability coverage for associations consisting of 100 units or less
    • At least $3,000,000 of Liability coverage for associations consisting of more than 100 units
  • Worker’s Compensation Insurance for associations with and without payroll.  Did you know that associations with no employees still have a Worker’s Compensation exposure? In a recent decision, the Courts of Appeals held that an Association and its managing agent were both liable to pay worker’s compensation benefits to an injured worker employed by an uninsured and unlicensed contractor.  This type of community association insurance is very affordable and it can give your association peace of mind.
  • Flood Insurance.  Flood is excluded on all Property Insurance policies so if your association is located in a flood zone then this is a must type of community association insurance to purchase.
  • Differences in Conditions Coverage for earthquake risks. Like flood, earthquake and all earth movements are excluded on Property Insurance policies.  This type of community association insurance can be an optional coverage for Condominium Associations and Single Family Homes associations with owned buildings.
  •  Liquor Liability Insurance for associations that allow the dispensing of alcohol. This type of community association insurance covers potential claims from someone involved in an accident after buying or being served liquor.

Our professional insurance agents can assist in the many additional elements of the proper community association insurance. Seemingly small matters such as insuring for replacement values, rather than depreciated values, is one such consideration.

Learn more about community association insurance by calling O’Kane & Tegay and speak with one of the experienced and knowledgeable agents in our San Francisco office, at 415-242-8773, anytime Mon-Fri, 7:30 am to 3:30 pm.


Request a quote for community association insurance by filling out an application.Request a Quote

We’ll take the time to evaluate your current community association insurance coverage at no cost, and we’ll review your coverage needs. We’ll then search for the best community association insurance providers and products to fit the needs of your organization.

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