Are HOAs Required to Obtain Proof of Insurance from Contractors?
By: Shoreline Public Adjusters
Updated: March 2026 · 6 min read
In This Post:
- Why This Question Matters More Than Most Board Members Think
- State-by-State Requirements: Minnesota, Florida, and Wisconsin
- What Types of Insurance Contractors Should Carry
- Best Practices for HOAs When Hiring Contractors
- What Happens If Your HOA Skips This Step
- Frequently Asked Questions
A contractor without insurance damages a roof during a repair. The HOA files a claim. The insurer denies it — because the contractor wasn't covered and the board never checked. Now the association is paying out of reserves, and homeowners are looking at a special assessment.
This scenario plays out more often than most board members realize. And it almost always starts with the same question: are HOAs required to obtain proof of insurance from contractors before work begins?
The short answer is that it depends on your state and your governing documents. But in practice, every HOA should treat contractor insurance verification as mandatory — whether the law explicitly requires it or not. Skipping this step is one of the fastest ways to expose an association to a claim that its own policy won't cover.
I've worked with HOA boards across Minnesota, Florida, and Wisconsin on property damage claims where the contractor's insurance status became the central issue. The pattern is consistent: the board assumed the contractor was covered, nobody asked for a certificate, and when something went wrong, the association was left holding the bill.
State-by-State Requirements: Minnesota, Florida, and Wisconsin
The legal obligation to verify contractor insurance varies by state. Here's what HOA boards need to know in Shoreline's three service states.
Minnesota
Minnesota law does not directly require HOAs to obtain proof of insurance from contractors. However, associations are required to maintain property and liability insurance under Minn. Stat. § 515A.3-112. Hiring an uninsured contractor can jeopardize that coverage.
📋 Minnesota Law: Minn. Stat. § 515A.3-112 requires HOAs to maintain property and liability insurance "to the extent reasonably available." Hiring uninsured contractors can create coverage gaps that put the association's policy at risk. Source: Minnesota Legislature
Minnesota also prohibits contractors from offering to pay a homeowner's insurance deductible as an inducement to sign a contract. This is a red flag that signals potential fraud — and it's something HOA boards should watch for when vetting contractors for insurance claim-related repairs.
Florida
Florida has stricter requirements. Contractors with one or more employees must carry workers' compensation insurance under the Florida Homeowners' Association Act. HOAs should obtain proof of this coverage before any work begins.
📋 Florida Law: Florida's Condominium Act requires associations to maintain adequate property insurance covering all common elements. Hiring uninsured contractors directly undermines this obligation and can void coverage on active claims. Source: Florida Legislature
Florida HOAs should also require contractors to name the association as an additional insured on their liability policy. This gives the HOA direct protection under the contractor's coverage — not just the association's own policy.
Wisconsin
Wisconsin law doesn't explicitly require HOAs to obtain proof of insurance from contractors. But associations are obligated to maintain adequate insurance for commonly owned property under Wis. Stat. § 703.17.
📋 Wisconsin Law: Wis. Stat. § 703.17 requires HOAs to insure commonly owned property. The Wisconsin Department of Safety and Professional Services also regulates contractor credentialing, including insurance and licensing. Source: Wisconsin Legislature
In practice, Wisconsin HOAs that skip contractor insurance verification risk the same exposure as associations in any other state: an uninsured loss that the board's own policy won't cover.
What Types of Insurance Should HOA Contractors Carry?
Not all contractor insurance is the same. HOAs should verify that contractors carry the right types of coverage before signing any agreement.
General liability insurance covers third-party injuries and property damage. This is the baseline. If a contractor damages a common element or injures a resident during work, this policy responds.
Workers' compensation insurance covers medical costs and lost wages if a worker is injured on the job. In Florida, this is legally required for contractors with employees. In Minnesota and Wisconsin, it's strongly recommended.
Commercial auto insurance covers accidents involving vehicles used for the contractor's work. If a contractor's truck damages association property, this is the policy that pays.
Professional liability insurance (errors and omissions) covers claims related to professional negligence. This matters for contractors providing design, engineering, or consulting services to the HOA.
An HOA should set minimum coverage limits for each type. A public adjuster experienced with HOA claims can help the board determine appropriate thresholds based on the size and scope of the project.
Best Practices for HOAs When Hiring Contractors
Verifying insurance doesn't have to be complicated. Four steps protect the association on every project.
Request a Certificate of Insurance (COI). This is the standard document that proves coverage. Ask for it before any work begins — not after.
Verify the policy is active. Call the insurance provider listed on the COI. Certificates can be outdated or forged. A two-minute phone call confirms the policy is current and the coverage limits are accurate.
Set minimum coverage requirements. The board should establish minimum limits for general liability, workers' comp, and auto coverage. Put these requirements in writing in the contractor agreement.
Require an additional insured endorsement. This is the most overlooked step. When the HOA is listed as an additional insured on the contractor's policy, the association has direct protection under that policy — not just its own. This is standard practice and any reputable contractor will agree to it.
If a contractor refuses to provide proof of insurance or pushes back on the additional insured requirement, that's your answer. Move on.
What Happens If Your HOA Skips This Step
The consequences of hiring an uninsured contractor are not hypothetical. They show up in claim files.
The association gets sued. If an uninsured contractor causes injury or property damage, the HOA is the next target. Without the contractor's insurance to respond first, the liability falls on the association.
The HOA's own policy may not cover it. Many association policies contain exclusions or conditions related to contractor work. If the board didn't verify insurance and a loss occurs, the insurer may deny the claim — or subrogate against the association.
Homeowners pay through special assessments. When reserves aren't enough to cover an uninsured loss, the board levies a special assessment. Every homeowner in the association shares the cost of a problem that proper vetting would have prevented.
The project stalls. Insurance disputes create delays. If damage occurs mid-project with no contractor coverage, the work stops while the board figures out how to fund the repairs.
⚠️ What HOA Boards Often Miss: Even when state law doesn't explicitly require contractor insurance verification, most CC&Rs and governing documents do. Board members who skip this step may be breaching their fiduciary duty to the association — which creates personal liability exposure for directors.
Is your HOA dealing with a property damage claim? Whether the issue is a contractor dispute, storm damage, or an underpaid claim, Shoreline works exclusively for the association — not the insurer. Contact Us
Frequently Asked Questions About HOA Contractor Insurance
Is it illegal for an HOA to hire an uninsured contractor?
Not in every state. But it's always risky. Florida requires workers' compensation for contractors with employees. Minnesota and Wisconsin don't mandate proof of insurance, but hiring uninsured contractors can jeopardize the association's own coverage and create personal liability for board members.
What should an HOA do if a contractor refuses to provide proof of insurance?
Don't hire them. A reputable contractor will provide a Certificate of Insurance without hesitation. Refusal is a red flag that signals either lapsed coverage or no coverage at all.
Can homeowners sue an HOA for hiring an uninsured contractor?
Yes. If a homeowner suffers damages — financial or physical — because the board hired an uninsured contractor, they can pursue legal action against the association. Board members may also face personal liability if they failed to follow the CC&Rs or exercise reasonable diligence.
Does an HOA's master policy cover contractor damage?
It depends on the policy. Many HOA master policies have exclusions for work performed by uninsured or underinsured contractors. Even when coverage exists, the deductible on an association policy can be significant — and the contractor's insurance should respond first.
What is an additional insured endorsement?
It's a modification to the contractor's liability policy that extends coverage to the HOA. If the contractor causes damage, the association can file a claim directly under the contractor's policy instead of relying solely on its own coverage. Every HOA should require this on every contract.
Protect Your Association Before the Next Project
If your HOA is hiring contractors for repairs, maintenance, or storm damage restoration, insurance verification is the first step — not an afterthought. And if your association is already dealing with a property damage claim, having the right representation matters.
Shoreline Public Adjusters works exclusively for HOAs and condo associations. We don't represent insurers. We don't collect a fee unless your settlement increases.
Learn more about how we help associations at our HOA insurance claim support page.
You may also find these helpful:
- Does HOA Insurance Cover Water Damage?
- How to Get Your HOA Master Insurance Policy Fast
- What Do Public Adjusters Do? A Complete Guide
Shoreline Public Adjusters, LLC is licensed in Florida (FL G199012), Minnesota (MN 40962416), and Wisconsin (WI 21156868).
Shoreline Public Adjusters, LLC
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Suite #200
Naples, FL 34102Email: hello@teamshoreline.com
Phone: 954-546-1899
Fax: 239-778-9889