HOA Insurance in Minnesota for Connected Townhomes


Can TOWNHOMES in MN. consider the option of getting a HO-3 rather than be under the Townhome association Master policy? And if so, how would that work if the townhomes are connected (via roofs.)
The Association would then only need to get a policy covering common grounds, liability etc.

We are running into problems trying to secure insurance. Our current ins. Co. Is not wanting to renew us after encouraging us to turn in a roof claim.

In regard to insurance referenced in our Bi-laws indicate
“The Association shall maintain, to the extent reasonably available, the following insurance.

– Lynn



Hi Lynn,

Master insurance policies typically only cover general liability and damage to the common areas. Privately owned townhomes are often not covered under the HOA’s insurance policy, so homeowners usually shouldn’t rely on the master insurance to protect their homes. Whether homeowners purchase a separate HO3 insurance policy is usually left up to them and is the individual homeowner’s responsibility.

However, the Minnesota Common Interest Ownership Act Section 515B.3-113(b) does require HOAs to purchase insurance with coverage for connected units, if any. It states that common interest communities with units or structures within units that have shared or contiguous walls, roofs, and sidings must secure insurance covering those units, structures within those units, and the common elements. It also outlines items that do not need coverage within those units, including:

  • Wall or ceiling finishing materials
  • Finished flooring
  • Cabinetry
  • Finished millwork
  • Electrical, heating, ventilating, and air conditioning equipment, and plumbing fixtures serving a single unit
  • Built-in appliances
  • Other improvements or betterments

In your case, the HOA may be required to purchase additional coverage to comply with this section. The HOA must also purchase insurance as required by the governing documents. However, the homeowners may still purchase separate homeowners insurance to cover everything else.

For further guidance, kindly speak with an insurance company, HOA attorney, or management company. You can find them through our online directory: https://www.hoamanagement.com/


Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

company logo
company logo
company logo
company logo
company logo
company logo
company logo
company logo