More units, more amenities, more limit.
Commercial umbrella and excess liability for community associations: extra limits above the general liability, hired and non-owned auto, employers liability and, where the program allows, directors and officers, for communities with pools, playgrounds, lakes, gates, security patrols and hundreds of homes.
By Sam Alishahi · CA Insurance License #4348151 · Reviewed October 2026 · How this page is researched
What sits underneath decides what sits on top
An umbrella does not insure anything by itself. It pays after an underlying policy has paid its full limit, so the first job is listing what sits underneath: the association's general liability, any hired and non-owned auto for the manager's errands and volunteer trips, employers liability if the association has staff, and on some association programs the directors and officers policy. Each underlying policy has to carry a limit the umbrella insurer accepts, and if one of them lapses or runs short, the umbrella drops down only if its wording says so.
Associations buy it because of what owners and guests can reach. A pool, a spa, a playground, a lake or retention pond, a clubhouse that hosts parties, gated entries, security patrols and private streets each add a way for a serious injury to happen on common ground, and a single drowning or a crash on an association road can exceed a general liability limit. The more separate interests there are, the more people use those amenities, so underwriters price the umbrella on unit count and amenities as much as on claims.
California's thresholds set the starting point. Civil Code section 5805 shields individual owners from common-area tort suits only when the association carries general liability of at least two million dollars for one hundred or fewer separate interests, or three million dollars for more, and section 5800 protects volunteer directors only with liability and D&O at its own amounts. A one million dollar general liability policy plus an umbrella of one, two or more million dollars is the usual way boards reach those figures, and larger communities go to five or ten million dollars.
- Excess over general liabilityPool, playground, clubhouse and common-area injury claims above the primary limit.
- Hired and non-owned autoAccidents during manager and volunteer driving on association business.
- Employers liabilityExcess limits when the association has on-site staff.
- D&O on some programsExcess over the directors and officers policy where the umbrella form lists it.
What underwriters will ask
Having these ready means I can go to market on the first call. The quote form asks for the same things, and anything you don’t know yet can wait.
- Underlying policies: declarations pages for general liability, auto, employers liability and D&O with their limits.
- Community: number of separate interests, acreage, private streets and gated entries.
- Amenities: pools, spas, playgrounds, lakes, clubhouse, gym, courts and any rentals of the clubhouse.
- Security: guard service, patrol contracts, cameras and whether guards are employees or contractors.
- Staff and vehicles: employees, golf carts, maintenance trucks and who drives for the association.
- History: five years of liability loss runs and any claim that reached the primary limit.
HOA umbrella insurance, answered
What is the difference between a follow-form excess policy and a true umbrella?
A follow-form excess policy adopts the terms of the underlying policy and only adds limit. A true umbrella can be broader, dropping down to cover some claims the underlying policy does not, subject to a self-insured retention. Association programs offer both, and I show the board which one is quoted.
How much umbrella does our association need?
Start with Civil Code section 5805: two million dollars of general liability for one hundred or fewer separate interests, three million dollars above that, for owners to be shielded from common-area tort suits. Then add for pools, lakes, security and traffic. Many mid-size communities carry five million dollars in total, and large master associations go higher.
Does the umbrella cover the board's decisions?
Only if the umbrella form schedules the D&O policy as underlying coverage. Some community association umbrellas do, many do not, and a separate excess D&O policy is the alternative. I confirm it in writing because boards often assume the umbrella covers everything.
What underlying limits do umbrella insurers require?
Usually a general liability policy with at least one million dollars per occurrence, auto liability at a stated combined single limit, and employers liability at stated amounts if there are employees. Fannie Mae's project guide likewise asks for at least one million dollars per occurrence on the association's liability policy, which lines up with what umbrella underwriters expect.
Is the umbrella rated on claims or on the property?
Both. Underwriters look at the unit count, the amenities, security operations, vehicles and staff, and then at five years of liability losses. A clean record in a large community with a lake still pays more than a small townhome association with no pool, because the exposure is larger.
Do you offer HOA umbrella insurance outside California?
Yes. Clients across the country send the same quote form. Sam Alishahi is licensed in 49 states and Washington, DC and places policies there directly. In Florida, where Sam's licenses are still being issued, a partner agency in your state helps in the meantime. The shopping across carriers works the same way. Rules, minimums and markets differ by state — see insurance requirements by state.
List the amenities. I'll set the limit.
Send me the underlying declarations pages, the unit count and a list of pools, lakes, gates and security. I'll quote the umbrella at the Davis-Stirling amounts and above, and tell you whether D&O can sit underneath it.
Alishahi Insurance · Saman Alishahi, independent insurance broker, California License #4348151. General information, not a quote or a promise of coverage; coverage depends on underwriting and the terms, conditions and exclusions of the policy actually issued.
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