Condo Association Insurance Review

Started by DelfinP • 6 replies • 1579 views

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DelfinP (Illinois)
Posts: 4

Posted:

As the treasurer for our board, we are currently reviewing our master insurance policy. What we'd like to do is shop it around a little (the board was just formed one year ago), and we're realizing that about 20% of our budget is going to pay insurance. We just want to make sure that's in-line and appropriate, and that the coverage and premiums make sense. Does anyone have any online resources where we could initiate quotes? Thanks in advance!

PatrickH (California)
Posts: 204

Posted:

Hi Delfin, I was the Treasurer for my HOA for six years and the insurance was probably the most complex and confusing thing I ever dealt with.

I'd recommend not searching the Internet for online quotes. You really need a live person to meet with you, see your property and answer all your questions. Not sure where you're located, but hopefully there are brokers around that specialize in HOA insurance, those you may find on the Internet.

The broker you choose is the most important person in the equation. They know the companies, the policies and the coverages and can shop around for you. They follow the trends in the industry and can give you a heads up if something is changing.

Our broker meets with our Board every year about three months before our policies come up for renewal. He handles over a hundred HOAs, so he's getting new policies throughout the year and knows what's happening. He can give us a ballpark figure for our various polices based on other HOAs policies.

A good broker is an invaluable asset when it comes to handling the insurance needs of an HOA. Even with all the time I spent with him on our insurance situation, I never felt qualified enough to go out shopping for the insurance policies myself.

RogerB (Colorado)
Posts: 5,067

Posted:

I recommend an insurance agent rather than an insurance broker to cut out the middle man expense. Get bids from an agent of three good companies servicing your area.

BillyH (Georgia)
Posts: 9

Posted:

Iam a new treasurer for a condo association as well and I face the same dilema. Only our insurance is about 40 to 45% of our budgeted income. I have had no luck in getting any new quotes. I am interested in any new sources. Our development is located in Georgia.

GlenL (Ohio)
Posts: 5,491

Posted:

You might try IHG Insurance (link on the right) also only insure what you are responsible for. I would recommend replacement value instead of a dollar amount for buildings because an adequate amount today may come up way short in a couple of months.

Studies show that 5 out of 4 people have problems with fractions

IzzyG (New York)
Posts: 2

Posted:

See an article that i wrote on https://trustevergreen.com specialty for board members, presidents and treasurers.. this will teach you the basics of insurance shopping for condo coop and HOA master insurance policies.

Happy shopping!

http://trustevergreen.com/news-media/2011/05/self-managed-condocoop-associations-master-insurance-shopping/

MelissaP1 (Alabama)
Posts: 13,836

Posted:

There's not alot of insurance companies out there that cover HOA's/Condos. So you may be limited to just a few. We used Travellor's insurance. I think 20% of your budget on insurance is a bit of wishful thinking. It is usually closer to 40% of your monthly expenses. We had to make payment plan with our insurer. We paid about 2300 a month for 10 months. Some insurers want the whole payment all at once. It does cost extra to arrange payments for processing fees and such they tack on.

We had a clubhouse, pool, and board members to cover. I would recommend a clear up to date evaluation of the replacement costs of any amenities you may have. Our clubhouse was grossly under insured after many years of neglecting the insurance policy coverage. Also a hard look at how much of a deductible your HOA can handle in case of emergency. You will want to keep that amount in a savings account at all times.

Good shopping advice by the others. It isn't as easy as it seems. However, your HOA needs it.

Former HOA President

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