HOA Fees

Homeowners association fees (HOA fees) are monthly expenses paid by members of a residential community (like a condo) to maintain the shared space.

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hoa fees

Homeowners association fees (HOA fees) are monthly expenses paid by members of a residential community (usually a condo) to maintain the shared space.

What are homeowners association (HOA) fees?

Homeowners association fees are a set sum of money you need to pay when you live in a residential property, condo community or co-op.  

Residential communities typically have an HOA board, which is a group of residents who manage common areas and community property, create and enforce rules, and try to maintain a certain quality of living for the building or neighborhood. 

The HOA uses the HOA fees to cover the costs of upkeep to the shared spaces, such as lobbies, patios, landscaping, swimming pools, clubhouse, tennis courts, and elevators. The fees can also pay for services like trash removal, repairs, and reserve funds.

How much are HOA fees?

Monthly HOA fees typically range between $200 – $1,000. They vary based on the location of the condo, and what the HOA provides. The more services and amenities, the higher the monthly HOA fees. 

Each resident must pay the exact same amount unless they have exclusive access to a service or amenity like reserved parking. 

What do HOA fees cover?

City Services
Depending on the HOA community, your HOA fee might go towards trash disposal or water fees. 

HOA Insurance
An HOA’s condo association insurance policy protects damages to the complex’s common area. Take note that you’ll need to separate purchase condo insurance (aka an HO6 policy) to protect your individual unit’s interior and your personal property.

Maintenance and repairs
General maintenance and repairs of the common areas, for instance, electricity, or gardening.  

Amenities and services
Such as a fitness center, swimming pool, security gate, or doorman and concierge services, depending on your HOA community. Naturally, the more luxurious the amenities, the higher the HOA fees.  

Reserve funds
This is a savings account for unexpected costs and expenses. Let’s say your shared laundry room gets flooded, your HOA will dip into the reserve funds to fix it. 

Pest control
If you’re unlucky enough to have a pest problem, your HOA fees would cover the exterminator or pest control services. 

Are HOA fees optional?

No. Once you’ve signed a contract and moved into a property that has an HOA community, you’ll be required to follow the rules of the HOA, which includes paying HOA feels. Otherwise, you may face legal action. 

Your HOA might be flexible about late payments, but most require a late fee or interest on your payment. You should look into the consequences of a late HOA fee before you sign your contract. Skipping HOA fees permanently can lead to potential foreclosure.

Are HOA fees worth it?

That really depends on your lifestyle- there are many pros and cons to weigh before moving into a condo community. 

Well-managed HOAs do a lot of heavy lifting for you. They’ll make sure there are enough reserve funds for emergency projects, which is a big relief for those who hate taking care of repairs or maintenance. Not to mention, your outdoor space will likely look immaculate at any time of the year. 

Your HOA fees should be fair, based on the services you receive. If you’re not getting too much out of your condo community and you’re still paying big bucks, you might want to re-think it. 


A few quick words, because we <3 our lawyers: This post is general in nature, and any statement in it doesn’t alter the terms, conditions, exclusions, or limitations of the policies issued, which differ according to your state of residence. You’re encouraged to discuss your specific circumstances with your own professional advisors. The purpose of this post is merely to provide you with info and insights you can use to make such discussions more productive! Naturally, all comments by, or references to, third parties represent their own views, and Lemonade assumes no responsibility for them. Coverage may not be available in all states. Please note that statements about coverages, policy management, claims processes, Giveback, and customer support apply to policies underwritten by Lemonade Insurance Company or Metromile Insurance Company, a Lemonade company, sold by Lemonade Insurance Agency, LLC.  The statements do not apply to policies underwritten by other carriers.

 

 

 

 

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Please note: Lemonade articles and other editorial content are meant for educational purposes only, and should not be relied upon instead of professional legal, insurance or financial advice. The content of these educational articles does not alter the terms, conditions, exclusions, or limitations of policies issued by Lemonade, which differ according to your state of residence. While we regularly review previously published content to ensure it is accurate and up-to-date, there may be instances in which legal conditions or policy details have changed since publication. Any hypothetical examples used in Lemonade editorial content are purely expositional. Hypothetical examples do not alter or bind Lemonade to any application of your insurance policy to the particular facts and circumstances of any actual claim.