My Condo Association Insurance premiums just increased, what should I do?

As one of the largest expenses condominium associations faces, insurance premium increases can be painful.  Our experience has shown that we are in a period when most insurance companies are increasing prices.  It is important to obtain multiple options for your association insurance so that you can make an informed decision where to buy.

What does the master condo policy cover?

Your condo association master policy will be structured to cover “common elements”. What constitutes common elements depends on your bylaws and local regulations. The most common ownership is “walls in”, meaning the unit owner is responsible for all fixtures, flooring, etc. In the event of damage the condo association is most likely responsible for providing finished, but unpainted, walls. Some associations provide “all in” coverage, providing coverage for fixtures, attachments, etc.

Can we get a quote midterm?

Unlike personal lines policies, most insurance carried by condo associations is subject to a penalty if cancelled midterm. Contact us to discuss any potential coverage gaps and whether it makes sense to explore replacing coverage before your expiration date.

How much should we insure our building for?

Although you can buy cheaper insurance for the actual cash value of the building, we recommend buying replacement cost coverage. The replacement cost includes the cost to remove the damaged prior structure and erect an identical one in it’s place. The amount of coverage is determined through an appraisal.

What lines of coverage do condo associations buy?

Property Insurance – Covers damage to the common structure of the building

General Liability Insurance – Covers injury to third parties

Umbrella Insurance – Provides excess liability insurance above primary policies

Directors and Officers Insurance – Provides coverage for allegations or mismanagement by condo board members

Fidelity or Crime Insurance – Covers theft or embezzlement

Workers Compensation Insurance – Covers injury to workers while on the job, often required if the association has employees

Employment Practices Insurance – Covers allegations of wrongful termination or discrimination

My insurance is handled by our management company, should I ignore it?

Association Insurance is one of the largest costs for most associations.  In the business that comes in making sure your building is run well day by day, management companies may decide to simply renew the current insurance rather than going through the process of evaluating other insurance options. We are happy to contact the manager on your behalf and make the process as smooth as possible.

I am a property manager who oversees multiple condo associations, what services do you offer me?

As a professional property manager, we understand that insurance can be among the more tedious jobs you are responsible for.  We offer a turn-key outsourced insurance service that will take an independent review of each location you manage.  With minimal work on your end, we will provide a report on the current insurance each association has in place and obtain additional competitive options for the association to consider.  Saving money and getting better coverage is often a tangible item to point to when your management contract comes up for renewal.