A planned unit development is somewhat similar to a condominium, but with a few different rules and regulations. PUD insurance is a type of policy designed to cover people who are living in these types of communities. These are some of the benefits of having PUD insurance and how PUD differs from other types of insurance.
PUDs and HOAs
Planned unit developments allow people to own a home and the land the home sits on, but the land is very small and easy to maintain. This differs from a traditional condominium where the homeowner does not own the land, only the structure. With PUDs, the homeowners’ association will handle the maintenance of the yards and land for its community. The HOA then needs to have insurance in case of a problem during that maintenance.
What Can PUD Insurance Do For an HOA?
Insurance specifically for PUDs can protect the association from several things:
- General Liability
- Property Damage
- Crime
If someone is injured or has damages that occur at the HOA, general liability within the PUD insurance will cover it. Property damage can include buildings, sewers, landscaping, and even legal paperwork. Crime or fraud within the HOA that leads to a lawsuit allows the HOA to use its PUD insurance to cover costs.
HOAs that deal in PUDs need to be knowledgeable about insurance and coverages that will cover their specific needs.