Pros and Cons of an HOA

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Buying a new home is one of the biggest financial investments you will ever make, which is why it is vital to make sure you invest in the right one. When looking for your next home, make sure to look into some that are part of a homeowners association, or HOA. Consider these pros and cons of living in an HOA when you are looking for a home.

The pros:

  • Many HOAs provide amenities that you may not be able to afford or have access to otherwise, such as tennis courts and pools.
  • Reduced responsibilities. The fees that are associated with living in an HOA go towards different services, such as snow removal, so you do not have to worry about doing it.
  • Better appearances. Most HOAs have special rules the prohibit property neglect, which means that the neighborhood will always look its best.

The cons:

  • If you do not keep up with your HOA fees, the HOA can foreclose on your house. Luckily, this is usually a last resort.
  • Surprise assessments. If the HOA does not have the cash reserves that it needs to pay for an expense, they can spring an assessment on you and force you to cover the cost.
  • Renting limitations. Most HOAs have restrictions on the amount of homes that can be rented out at once, which may mean you will not be able to rent out your home. They can also require approval of tenants if you do rent out your home.

Although HOAs have their own insurance policy, it does not mean you do not have to invest in your own specific homeowner’s  insurance policy. For all of your homeowners insurance needs and to ensure that you have the right amount of coverage, contact Mayer Insurance in Apple Valley, Minnesota.