Insurance Claims and HOAs: What Property Managers Should Know

When property damage hits a community managed by a Homeowners Association (HOA), the result is rarely straightforward. Unlike single-property claims, shared property claims involve overlapping coverages, shared responsibilities, and emotionally charged homeowners trying to make sense of what's covered and what’s not.

From confusion around insurance boundaries to the growing frustration of underpaid or denied claims, HOA property managers face an uphill battle. But with the right approach—and the right experts in your corner—navigating the complexities of these claims becomes a manageable task rather than a chaotic mess.

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The Complexity of Shared Property Claims

HOAs oversee both common areas (like roofs, stairwells, elevators, and clubhouses) and, in some cases, portions of individual units. The policy language governing these boundaries is not always clear—and that’s exactly where problems start.

When water damage from a burst pipe impacts both a unit and a shared hallway, which policy applies? Who files the claim? What if one homeowner believes their damage is being ignored while another’s is fast-tracked? These are the kinds of questions that fuel confusion—and delay.

According to a study, homeowners often struggle to understand the limits of their coverage, especially in condo and multi-unit environments. Insurance carriers capitalize on this confusion by underpaying or outright denying claims, a tactic highlighted by Jay M. Feinman in Delay, Deny, Defend.

Where Property Managers Come In

Property managers are often the first point of contact during these events. They must interpret complex policy language, mediate disputes, and coordinate with contractors, insurers, and residents—all while maintaining transparency and trust.

Your ability to act quickly and decisively will directly impact the recovery timeline and the morale of the community. More importantly, it could be the difference between receiving full compensation for damages or accepting an inadequate settlement.

Types of Damage Common in Shared Property Claims

Insurance claims within HOAs most commonly involve:

• Water damage from plumbing failures, HVAC issues, or sprinkler malfunctions.
• Fire and smoke damage, which may affect common infrastructure and individual units.
• Wind and hail damage, especially to shared roofing systems and exterior walls.
• Microbial contamination resulting from improper or delayed water mitigation efforts.

Best Practices for HOA Property Managers

1. Clarify Policy Boundaries Ahead of Time

Before disaster strikes, review the HOA’s master policy and individual unit policies. Where do responsibilities start and end? Is coverage based on original construction materials or current finishes? The work of industry experts emphasizes the importance of knowing what is and isn’t covered—and the nuances that insurers use to avoid payouts.

2. Create a Post-Loss Action Plan

Having a pre-built claims response plan helps reduce the chaos after a loss. It should include:

• Emergency response vendor contacts
• A damage documentation protocol
• A communication chain for informing residents
• A partnership with a trusted public adjuster who understands shared property claims

3. Document Everything

Insurers require extensive proof of loss, and inadequate documentation is one of the top reasons for claim denials or underpayments.

• Take detailed photographs of all affected areas
• Collect maintenance records and previous repair documentation
• Request detailed, line-item estimates from licensed professionals

A public adjuster can ensure that your documentation supports the full scope of loss—especially when shared and individual property lines blur.

4. Engage with a Public Adjuster Early

Public adjusters are licensed professionals who represent policyholders—not insurance companies—in property damage claims. When an HOA claim involves both common elements and multiple unit owners, the complexity often overwhelms standard processes.

Working with a certified public adjuster ensures:

• Proper valuation of both shared and private losses
• Fair allocation of the total settlement
• Faster resolution through expert negotiation

As experts point out, many losses go undervalued simply because no one on the policyholder’s side knew how to push back on a lowball estimate.

Managing Resident Expectations During a Claim

Residents often assume “the insurance will take care of it.” Unfortunately, that’s rarely the case. The insurance industry is built to deny, delay, and underpay—a truth exposed by consumer advocates at NAPIA and APA. When you combine this with residents who are displaced or emotionally distressed, tensions run high. Here’s how property managers can ease the process:

• Hold town halls or Q&A sessions with residents after a loss
• Use plain language to explain coverage limits and timelines
• Send regular updates via email, HOA apps, or SMS alerts

Transparency and frequent communication prevent misinformation from spreading and help you maintain trust.

Equitable Distribution of Payouts

Once the claim is settled, the distribution of funds becomes the next challenge. Even the most accurate assessment can feel “unfair” if not communicated clearly. Here’s how to avoid disputes:

• Base decisions on documented scope of damages
• Consider using a third-party estimate validation
• Be fully transparent about how funds are being allocated

Public adjusters can assist by preparing detailed breakdowns that support fair distribution. Their advocacy ensures that all parts of the property are considered—especially when the insurer wants to minimize payouts to just the most visible damage.

Turning Challenges into Advocacy Opportunities

HOAs are more than shared buildings—they’re shared responsibilities. As a property manager, your ability to guide your community through a crisis can define your leadership.

Insurance companies will continue to exploit gaps in understanding and delay resolutions. But by working with experts, organizing early, and managing the process with clarity and purpose, you can tip the scales in your community’s favor. The only way to beat the system is to know more than the adjuster across the table—or hire someone who does.

Take Action for Your Community

Shared property claims are never simple—but you don’t have to go it alone. Schedule a call for a free claim and policy review with Velocity Public Insurance Adjusters. We help HOAs and property managers across Florida get the compensation they’re entitled to—because when the stakes are high, every detail matters.