One of the most common points of confusion for HOA boards and community managers is what actually counts as “filing a claim.” Many assume that simply telling their insurance agent about an incident is enough to put the carrier on notice. It isn’t. A claim doesn’t officially exist until notice has been formally submitted to the insurance carrier itself, and once that happens, the carrier is required to open a file, whether it’s treated as an active claim or logged as “notice only.”
Understanding that distinction, and knowing when to report, can make a real difference in how well your association is protected when something goes wrong.
Why Timely Reporting Matters
Filing promptly and correctly protects the association’s interests. When notice is delayed or handled informally, a carrier may deny coverage altogether, which can leave the HOA financially responsible for a loss it should have been covered for. Late reporting can also complicate future renewals.
There’s a common assumption that filing a claim automatically raises premiums. That’s not quite accurate. Claims history is one of several factors a carrier weighs at renewal, but reporting a claim on its own doesn’t automatically lead to higher costs or non-renewal. In many cases, the bigger risk is waiting too long to report and losing coverage options entirely.
Know the Three Main Types of Claims
- Property claims are the most common, covering things like water intrusion, fire, storm damage, or vandalism. If something breaks, burns, or bursts and the cost meets or exceeds the deductible, it’s worth reporting.
- General liability (GL) claims apply when the association is alleged to have caused injury or damage to someone else, such as a slip-and-fall or property damage. Even nuisance complaints, like ongoing noise, can potentially trigger a GL claim if a resident alleges harm.
- Directors & Officers (D&O) claims cover board and management decisions, including allegations of wrongful action, failure to enforce governing documents, or discrimination. Because D&O coverage is claims-made, timing is critical. Any written demand or allegation, not just a lawsuit, can trigger the need to notify the carrier, and this becomes especially important if the association is in the process of switching insurance carriers.
“Notice Only” Still Means Something
There’s an important difference between a “notice only” claim and an active one. A notice-only claim is essentially a placeholder, the carrier logs the details and holds the file without a full investigation unless something changes. An active claim involves a deeper look: document requests, inspections, and reserves. A notice-only claim can become active if new information comes in later, such as a formal demand or evidence of more serious damage.
The key takeaway is that reporting something as “notice only” is not the same as doing nothing. It protects the association’s options down the road.
A Few Practical Habits Worth Adopting
- When you’re not sure, call your agent first. They can help determine whether a claim should be filed and which policy, property, GL, or D&O, is the right one to notify.
- Keep your agent copied on relevant written communication. They don’t need to be on every call, but staying informed helps them support the association if a claim develops later.
- Don’t wait to see if it “blows over.” Especially with D&O matters, delaying notice can mean losing coverage for something that felt minor at the time.
Filing a claim, or even just giving notice, isn’t a sign that something went wrong with how the community is managed. It’s a normal part of protecting the association. Boards and managers who understand the process and communicate clearly with their agent are in a much stronger position if a small issue ever turns into a bigger one.
This post is intended for general informational purposes only and is not a substitute for guidance from your association’s insurance agent or legal counsel regarding specific claims.
Source: OC View July | August 2026 article What Managers and Boards Need to Know About Filing Insurance Claims by Jamie Hackwith, CMCA, AMS, PCAM, Prendiville Insurance Agency