If you want to work with HOAs or municipalities, your insurance paperwork needs to be spot on.
Insurance for HOA projects isn’t just a box to check, it’s often the first thing that gets reviewed before a contract is signed or a bid is even considered. These organizations use insurance as a fast way to sort qualified contractors from those who aren’t set up to handle risk.
And it’s not just about having a policy. It’s about having the right coverage, limits, and language, spelled out exactly the way the HOA or agency requires. One missing endorsement or outdated COI can knock you out before you even get to the negotiation table.
In this post, we’ll break down why HOAs and municipalities require specific insurance, the exact documents they expect to see, typical coverage limits, and the most common mistakes that cost contractors time and opportunities.
Why HOAs and Municipalities Require Specific Insurance
Before a board approves your proposal or a city greenlights your permit, they’re going to look at one thing first, your insurance.
Both HOAs and municipalities have a responsibility to protect residents, property, and public funds. That’s why they often require strict insurance documentation. It helps them reduce risk, avoid liability, and confirm that any contractor they hire is ready to operate at a professional level.
Insurance for HOA projects is part of their first layer of screening. If your policy doesn’t meet their requirements, or your documents don’t check out, you’ll usually get passed over without much discussion.
This isn’t about making things difficult. It’s about protecting themselves from legal and financial blowback. For example, if there’s property damage, an injury on-site, or a dispute over scope, they want to be confident your policy will respond.
Municipal agencies work the same way. They have to justify who they hire, follow procurement rules, and stick to risk management guidelines. If your paperwork is sloppy, incomplete, or underinsured, it becomes a liability, and that’s a problem for them.
The bottom line: insurance for HOA projects and city work isn’t just formal paperwork. It’s a filter. The faster you match what they’re looking for, the faster you move through their approval process.
Key Documents You’ll Be Asked to Provide
If you’ve ever submitted a bid and then got asked to “clean up your insurance,” this is why. HOAs and municipalities aren’t just asking for proof of coverage, they want it documented their way, with specific language and formats that match their risk requirements.
When it comes to insurance for HOA projects, here are the most common documents and details you’ll be asked to submit:
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Certificate of Insurance (COI): This is your summary of coverage. It must show the correct named insured, coverage dates, and policy limits. It also needs to be current, usually issued within the last 30 days.
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Additional Insured endorsement: Many HOAs and agencies want to be listed as additional insured on your general liability policy. This gives them added protection if something goes wrong.
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Primary and Non-Contributory wording: This tells the HOA or municipality that your insurance will respond first before their policy ever kicks in. It’s a non-negotiable for most commercial contracts.
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Waiver of Subrogation: This prevents your insurance carrier from going after the HOA or municipality in the event of a claim. If it’s not listed, expect pushback.
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Project-specific language (sometimes): Some agencies want their name, job number, or address listed on the COI or endorsement. Double-check their requirements, every one is different.
If you’re missing even one of these items, or if the language isn’t formatted exactly how they ask for it, your documents could get rejected.
That’s why insurance for HOA projects isn’t just about what your policy covers. It’s about how that coverage is presented. Clean, accurate documentation moves you forward. Sloppy paperwork holds you back.
Typical Coverage Limits and Policy Types Required
It’s not enough to just show proof of insurance. The numbers, and the types of policies, have to meet specific standards. If you’re working on HOA or municipal projects, those standards are often higher than what you might see in residential or smaller commercial jobs.
Let’s break down what’s usually expected when it comes to insurance for HOA projects:
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General Liability: Most HOAs and city agencies require at least $1 million per occurrence and $2 million aggregate. For larger projects or higher-risk trades, those numbers can go up quickly.
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Umbrella or Excess Liability: If the base limits don’t meet project requirements, you’ll need an umbrella policy to bridge the gap. This is common when working in public areas or high-traffic zones.
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Workers’ Compensation: If you have employees, or use subs, this is required by law in most states and definitely by HOAs and municipalities. It must be active, and your limits need to reflect your payroll size and job locations.
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Commercial Auto: If you’re operating vehicles under your business, this coverage needs to be in place and often listed on the COI.
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Builder’s Risk (sometimes): For construction or renovation work, especially in shared spaces, HOAs may ask for proof of builder’s risk coverage to protect materials and the job site.
The tricky part is that these limits and requirements aren’t always spelled out clearly in the RFP or contract. Sometimes, you only find out once you submit your documents and they come back flagged.
That’s why it helps to treat insurance for HOA projects like part of your bid checklist. If your coverage isn’t already aligned with what these clients expect, you could be setting yourself up for a delay, or worse, a rejection.
Common Mistakes That Get Contractors Rejected
You can have all the right coverage and still get told “no” if your paperwork isn’t clean. Municipalities and HOAs review dozens of insurance submissions, and they don’t give second chances for sloppy details.
Here are the most common mistakes that knock contractors out of the running when it comes to insurance for HOA projects:
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Expired COIs: If your certificate is more than 30 days old, most agencies won’t accept it. It needs to be current and reflect active coverage.
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Missing endorsements: It’s not enough to say you have coverage, you have to prove it. If the Additional Insured or Waiver of Subrogation endorsements aren’t attached, your submission will likely get flagged.
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Wrong named insured: The business name on your policy must exactly match the one on your contract or license. Even a slight mismatch can create a compliance issue.
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Incorrect limits: If your coverage falls short of what the HOA or city requires, your bid could be disqualified, sometimes without explanation.
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Generic documents: Some contractors send the same COI to every client. But for HOAs and municipalities, you often need job-specific information, like project names or locations, clearly listed.
Most of these problems are fixable, but they take time. And when you're trying to hit a bid deadline or start a project, that delay can cost you the job.
Getting insurance for HOA projects right isn’t just about having coverage, it’s about presenting it the way your client expects. Take a few extra minutes up front, and you avoid the headache of revisions, delays, or rejections later on.
If you’re bidding HOA or municipal work, your insurance isn’t just a formality, it’s part of the approval process. The right coverage, clean documentation, and the right language can make the difference between getting the job or getting dropped from the list. When your paperwork lines up with what these clients expect, you move faster and look more professional. And if your work includes site prep or grading, now’s the time to make sure your Excavation Contractor Insurance is just as solid. Clean coverage keeps you in the running, and one step ahead.