Homeowners Association (HOA) Insurance in Washington State

Homeowners associations in Washington carry a responsibility that most board members do not fully appreciate until a claim arises. The HOA board manages common areas, enforces covenants, collects assessments, and makes financial decisions on behalf of the entire community — and each of those functions creates distinct liability. The Washington Homeowners' Associations Act (RCW 64.38) establishes the legal framework governing HOAs, including requirements for meetings, financial reporting, record access, and enforcement authority. A board that fails to follow these procedures faces challenges from homeowners, and those challenges increasingly come with legal representation and demands for damages.

Directors and Officers (D&O) liability is the most critical coverage for HOA boards, yet it is the one most commonly overlooked. Board members volunteer their time, but they make decisions that affect property values, impose financial obligations through assessments, and can restrict what homeowners do with their property through covenant enforcement. When a homeowner believes the board acted unfairly — denying an architectural modification request, imposing a special assessment for reserve funding, or selectively enforcing rules — the resulting lawsuit names individual board members as defendants. Without D&O coverage, those volunteer board members face personal liability for legal defense costs and any judgment, which can exceed $50,000 even in relatively minor disputes.

Common area liability is the other major exposure. HOAs maintain roads, sidewalks, parks, swimming pools, playgrounds, and landscaped areas used by residents and their guests every day. A visitor who trips on a cracked sidewalk, a child injured on playground equipment, or a resident who slips on ice in the community parking lot all generate premises liability claims against the association. In Washington, where freezing rain, moss growth, and wet conditions create slippery surfaces for months each year, the frequency of slip-and-fall claims is higher than in most states.

Assessment disputes and collections create additional risk. When the HOA imposes a special assessment for roof replacement or reserve fund restoration, not every homeowner agrees with the expenditure. Disputes over assessments and the process used to approve them can lead to litigation. Washington law requires specific procedures for budgeting, reserve studies, and homeowner notification. An HOA that fails to follow proper procedures risks having an assessment overturned by a court, leaving the association financially exposed. SmartInsured connects Washington HOAs with A-rated carriers offering comprehensive packages that combine D&O, general liability, property, and umbrella coverage at rates designed for community associations.