Understanding the Meaning of “Claims Made” Insurance Coverage to Protect Against Claim Denials Due to Late Notification

A homeowners association must have liability insurance that covers the association as an entity, as well as its officers, directors, and volunteer committee members for claims arising from alleged action, or inaction. Such policies are commonly referred to as “D & O” insurance coverage, or HOA Claims Made Insurance.

D & O policies are typically “claims made” policies where, in order to trigger coverage under the policy, a claim must be tendered to the insurance carrier within the policy period. Under a claims made policy, the actual acts that are the subject a claim could have occurred years before a claim is made, but the insurance policy that provides the coverage for liability based on those acts is the insurance policy that is in effect when the claim is actually made and tendered to the insurance company.