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If you’ve just purchased a home in a community maintained by a homeowners’ association, you may be wondering why this association exist. HOA refers to homeowners’ association and essentially responsible for the maintenance of the shared spaces within a community as well as to create rules for the betterment of the community itself. It is designed to manage common or shared property, protect owners’ property values, provides services to residents, and develop a sense of community through social activities and amenities.

There are certainly benefits on living in a HOA- governed community, however, it isn’t free. Here’s everything you need to know about HOA fees, including what they cover.

What is an HOA fee?

A homeowners’ association fee or an HOA fee is the amount of money collected by the HOA from owners of properties in certain types of communities. HOA fees are typically determined by the board of directors for your association. The board is responsible for setting the price, determining what the HOA fees include, and how often HOA fees must be paid. Each homeowner’s share of the HOA fees is based on the association’s budget for the year. When you join an HOA, paying fees becomes a mandatory obligation. The only feasible way to avoid paying HOA fees is to avoid living in an HOA-managed community.

What do HOA fees cover?

Some of the costs that can be paid for by members’ monthly HOA fee payments include:

  • Maintenance and repairs

Common amenities within community should be maintained regularly. This ongoing maintenance costs money. Some of these maintenance costs can include lawn care, landscaping, trash removal, snow removal, security system and gates, plumbing system maintenance and upkeep, lighting and electrical costs, repairs, pool maintenance and general repairs.

  • Reserve funds

It is a portion of the fees you pay that was set aside into the HOA’s reserve, which is a saving account that the association can dip into for unexpected or irregular expenses. In the event that your HOA doesn’t have enough saved up, the board may vote to require all homeowners in the community to pay what’s called special assessment to cover the costs.

  • Utility payment

Your HOA fees also cover utilities for any shared buildings like pools, wellness centers, meeting rooms. Depending on how your community is set up, your fees may also cover utility expenses for individual units.

  • Staff

If your homeowners’ association hires maintenance staff such as full-time maintenance staff, janitorial staff and security personnel, paying their salaries will be part of your regular fees.

  • Professional Management

Most HOA hire professional community association manager to enhance the standard of living in the community since board members of a homeowners’ association are typically volunteers. The association managers will oversee maintenance requests, insurance policies, and other operational tasks. This all ensures that the property values within your community are high, but it’ll come at a cost through your association fees.


  • Insurance

A homeowners’ association will need to purchase insurance. These policies serve to protect themselves against costly damage or any other incidents that may occur in these shared spaces. Depending on location, your association may also need to get flood insurance to protect it from environmental hazards.

Evidently, HOA fees cover many things that help improve the quality of life in the community you belong. It gives you luxury, security and a worry-free living for it almost take care of the things you need.

If you are considering buying a home or condo with an HOA, you can reach out to ONYX Insurance and talk with us. Contact or Email us now!














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