What is a common requirement imposed by homeowners associations regarding insurance?

Homeowners associations (HOAs) often impose requirements on their members to help manage risk and ensure adequate protection for the community as a whole. One common requirement is that members may be required to obtain specific endorsements on their insurance policies. This is because HOAs often seek to ensure that all members are adequately covered for risks that may affect the community, such as liability claims, damage to shared property, or the need for additional coverage types that may not be included in a standard homeowner's policy.

Requiring specific endorsements enables the HOA to maintain sufficient coverage standards within the community, ensuring that all homeowners are aligned with the policies designed to protect collective interests. This might include endorsements for increased liability protection, coverage for loss assessment, or flood insurance, depending on the needs of that particular community.

On the other hand, other options suggest requirements that do not align with typical HOA policies, such as carrying lower limits than average or only basic coverage, which could expose the association to higher risks if homeowners are not adequately insured. Furthermore, the notion that members need not carry any insurance contradicts the general principle that homeowners are usually required to maintain some level of insurance for their property and liability.