Planned unit developments or PUDs differ from condominiums in that residents also share ownership of the land on which the building stands. A homeowners’ association or HOA collects fees from PUD members to cover maintenance and upkeep. Even though individual members are responsible for their units, the PUD HOA is exposed to certain risks which should be managed through purchasing the proper insurance coverages. When it comes to these developments, property and general liability coverages are fairly typical, but an HOA should consider a PUD insurance plan to cover other exposures.
What Is PUD Insurance?
If you’re wondering what is PUD insurance and why it’s needed, consider the following risks for a PUD HOA:
- Workers’ Compensation – Injuries or illnesses experienced by anyone working for the HOA
- Errors and Omissions – Claims of negligence as a result of HOA decisions
- Directors and Officers – Claims due to wrongful acts by HOA
- Crime – Theft and other losses experienced on the property or committed by HOA
- Cybersecurity – Data theft, hacking, and other security breaches
A PUD insurance plan helps protect the HOA from typical and unique risks, some of which may not be apparently obvious.
What Else Should I Consider?
While there are many insurance companies out there, it’s important to find one that can work with your HOA to create a comprehensive plan. You can even benefit from the added protection of an umbrella policy that’s a part of your overall PUD insurance plan. Protect your HOA and PUD with a plan today.