HOA vs. Your Home Insurance: Who Covers What?

If you own a home in a gated community or just purchased a newly built house in the Little Falls, MN area, you may pay monthly homeowners association fees.   What does this mean for your home insurance from Hanneken Insurance Agency Inc.? It means you need to know exactly where your property ends and where the HOA begins.

Common Areas Fall Under the HOA

If your HOA mows your yard, shovels the sidewalk, and keeps the pool clean and maintained, then liability and property insurance for those areas will be carried by the HOA. The HOA may actually own the streets, common parking lots, playgrounds, and even drainage systems. If you live in a duplex, double garage doors could even be included in the fees.

If You Maintain It, You Insure It

If your contract with the HOA states that you must maintain the landscaping and exterior appearance of your home, then these areas should be included on your homeowner’s insurance policy.  Your HOA may only own the access roads around the development, but you fully own the lot. Make sure to discuss all the steps, decks, sheds, and other exterior items you are responsible for with your agent to ensure the policy is written correctly.

Ask for Clarification Before Repairing Anything

Should the property around your home get damaged in a storm, from vandalism, or poor construction, before you hire a contractor to fix it and file a claim on your policy from Hanneken Insurance Agency Inc. make sure to check with the office?  If you make changes to an area owned by the HOA, you could end up paying to have the work done again according to their specifications. If you have questions about your Little Falls, MN HOA and your home insurance, give your local agent a call today.

Is There Such a Thing as Too Much Auto Insurance Coverage?

Many people in Little Falls, MN, and surrounding areas approach auto insurance by considering the minimum required amounts of coverage. At Hanneken Insurance Agency Inc. we want you to know why you should consider the opposite approach. Minimums get you on the road, but having more insurance is far more beneficial.

The Problem with Too Little Insurance

As a no-fault insurance state, Minnesota requires all drivers to carry PIP car insurance. Unfortunately, a single accident can cause damages far beyond the minimum coverage amounts.

If there’s an accident, you can make a claim against your PIP coverage. If that’s not enough to cover all proven damages, you can then press a claim against the other driver’s insurance. Here is where things can go wrong. A single car accident can lead to expenses that skyrocket far beyond what you and the other driver’s insurance coverage can deal with.

The Problem with Too Much Insurance

The danger of too much is insurance comes with costs. True, your policy can probably cover literally any eventuality, but you’re likely overpaying for it. You can increase your liability coverage, add on additional packages of all types, and increase their coverage limits as well.

You probably don’t need extreme amounts of coverage. In addition, having that much coverage can make you a target for people who want to try to sue you for as much money as possible.

The Reason You Need the Right Amount of Insurance

You need to find a balance that fits your budget and your needs. No two people have the same insurance needs. Your coverage options will depend on your lifestyle, vehicle, risks, and whether you own the car or not. To figure it out:

  • Start with the minimums
  • Underinsured / Uninsured motorist
  • Collision / Comprehensive

Look at umbrella options and other insurance policies that you can benefit from. Generally, you should consider having as much auto insurance coverage in Little Falls, MN as you can comfortably afford. At Hanneken Insurance Agency Inc. we can help you find the right amount of insurance for your needs.