After moving into a house in St. Charles, Mo., Larry Smith received a notice that he must add the HOA to his homeowner's insurance policy, a move to prevent liability for homeowners who are negligent on community property. Smith discovered that the policy was next-to-impossible to attain, even from insurance companies the property manager recommended. Every insurance company said it wouldn't put an association on a personal plan because boards have no financial interest in the home and are not eligible to receive a payment if it suffers damage. Association representatives say standard liability policies don't fully meet their needs.
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