For condominiums, generally yes. The Tennessee Condominium Act of 2008 generally requires condominium associations to maintain property insurance on the common elements and liability insurance, though some older communities created before the Act follow their own declarations. For other homeowners associations, insurance requirements usually come from the community’s declaration and CC&Rs rather than a state statute, and virtually all governing documents require coverage.
Beyond legal requirements, lenders financing homes in HOA communities require evidence of proper master policy coverage — gaps or lapses can prevent homeowners in your community from selling or refinancing, creating significant board liability. Operating without adequate insurance also exposes the association and individual board members to personal financial liability.
Related FAQs
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A lapsed or cancelled HOA master policy triggers serious consequences on multiple fronts: Lender requirements: Mortgages on units in your community typically require HOA coverage. Lenders can force-place coverage ...
