Understanding Certificates of Insurance (COI): Why They Matter and How They Protect You

A Certificate of Insurance (COI) plays a crucial role in protecting all parties involved in a project or service agreement. Despite being a short, simple document, a COI carries significant legal and financial weight. It verifies that a business or contractor has active insurance coverage and meets the requirements established by the party requesting the work. When moving into or out of a gated community, it’s easy to focus on packing boxes, coordinating schedules, and arranging movers. However, there’s one important detail homeowners often overlook  ensuring that their moving company provides a Certificate of Insurance (COI).

At Bancroft, the HOA strongly recommends that homeowners request a COI from any moving company they hire. While not a mandatory rule, this small step plays a big role in protecting both homeowners and the community.

What Is a COI ? 

A Certificate of Insurance is an official document issued by an insurance provider or agent. It serves as proof that a contractor, vendor, or service provider has current insurance coverage. The COI typically summarizes key information, including:

• The types of insurance policies held
• Coverage limits
• Policy effective and expiration dates
• The insured party’s legal business name
• The insurer’s contact information
• Any additional insured parties, when applicable

While a COI is not the insurance policy itself, it acts as a snapshot of coverage at a specific moment and is widely used across industries—from property management and construction to event planning, maintenance, housekeeping, landscaping, and more.

Why Is a COI Important?

COIs are essential because they help protect property owners, associations, and businesses from financial liability. When work is performed on a property especially work involving physical labor, tools, or equipment—accidents can happen. Without the proper insurance, the hiring party may be exposed to:

• Property damage
• Worker injuries
• Legal claims
• Costs arising from negligence or accidents

Requesting a COI ensures the contractor has liability coverage, general insurance, and (when applicable) workers’ compensation coverage. This safeguards the hiring party from being held responsible for incidents that should be covered by the contractor’s policy.

By asking movers to provide a COI, the HOA ensures that any company entering the community is covered in case of accidents or property damage.

For example, a moving truck could accidentally:

• Scratch or damage the gate system or fencing
• Crack or stain the driveway or private road
• Hit mailboxes, curbs, or community signage
• Harm landscaping, irrigation systems, or shared utilities

With a COI in place, the moving company’s insurer—not the HOA or homeowner—handles the repair costs. Without one, the HOA might have to file a claim under its own policy, tap into reserve funds, or even issue a special assessment to all homeowners to cover damages.

Protecting Shared Community Property 

Just as the HOA requires vendors and contractors (like landscapers or roofers) to carry insurance, it’s equally important for moving companies to be insured. Gated communities have shared spaces—private driveways, controlled entry gates, sidewalks, and landscaped areas—that can easily be damaged during a move.

Requiring or requesting a COI is a simple, proactive step that:

• Protects shared assets maintained by homeowner dues
• Avoids costly repairs or disputes over responsibility
• Encourages accountability from service providers

While some HOAs make a COI mandatory, Bancroft takes a “request, not mandate” approach.

Here’s why:

1.  Legal and Practical Challenges 

Unlike high-rise buildings, where management can restrict elevator access, a single-family gated community cannot reasonably block a moving truck from entering. Homeowners have a legal right to access their property.

Also, some residents handle their own move or hire smaller, uninsured movers. Enforcing a strict COI policy in those cases could create unnecessary conflict or legal complications.

2.  Encouraging Cooperation Over Conflict 

The goal of the policy is to educate, not penalize. By requesting (rather than mandating) a COI, the HOA encourages homeowners to choose reputable, insured movers, protecting both their own belongings and the community’s property.

This approach builds trust and promotes cooperation, rather than creating tension between residents and the HOA.

Best Practice for Homeowners 

To help keep the community safe and protected, homeowners are strongly encouraged to:

1. Request a Certificate of Insurance from their moving company.
2. Ask that the COI lists Bancroft HOA as the Certificate Holder.
3. Submit the COI to the HOA at least 48 hours before the scheduled move.

This process ensures that any moving company operating within the gates is properly insured and that all parties are protected in the rare event of damage.

A Shared Commitment to Care 

Your HOA’s COI request isn’t about adding red tape—it’s about maintaining a safe, well-protected community for everyone. By taking this simple precaution, homeowners help prevent costly damage, reduce liability risks, and ensure the community continues to look and function its best.

In short   requesting a COI from your moving company is a smart, simple safeguard that benefits you and your neighbors alike.

If you’re planning a move soon, please reach out to the HOA office for guidance on submitting your COI. Together, we can keep Bancroft safe, well-maintained, and welcoming for all residents.