Useful article on identifying risks

Started by SheliaH • 4 replies • 145 views

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SheliaH (Indiana)
Posts: 6,964

Posted:

(boy, I've been posting a lot of these lately - don't know how many people read them, but I hope they give one something to think about).

This time, we have tips of identifying and focusing on the most dangerous risks. HOA board members do seem to have 1001 things to think about (which is why no one wants to sign up for the job), but because someone has to do it, you may as well look for ways to do it more effectively. That starts with dividing the majors from the minors - you might not want to use the suggestions listed here, which is ok, as long as you find a way to concentrate on the major issues and not get bogged down. Enjoy!

https://www.thoughtleadersllc.com/2024/08/focusing-on-the-biggest-risks/

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

CathyA3 (Ohio)
Posts: 6,299

Posted:

BOards go through a similar process when thinking about insurance.

Two types of events will break you. One is high frequency/probability and low impact (death by a thousand cuts). The second is low frequency/probability and high impact (a catastrophic storm causing widespread damage).

The first type can lead to numerous small claims, which can result to higher premiums or loss of coverage altogether. This is why boards my choose to raise the master policy's deductible and to pay out of pocket if a loss is close to the deductible amount. The second type is harder to mitigate since the causes are often acts of God, which by definition can't be predicted or prevented. This type is basically why you buy insurance at all.

We've heard from some board members around the country who are talking about moving toward a high-deductible master policy, which is the only type of policy available to them at a premium cost they can afford.

I note the irony of the risk posed by possible loss of insurance coverage....

KerryL1 (California)
Posts: 14,550

Posted:

Intersting ariicle , Shelia.

Off topic, Our HOA's insurance agent did meet with the Board and attending owners at a regular board meeting on Tuesday. Our 2024 insurance for our 200+ 2 condo high rises will be $40,000 more than 2024--our insurance this year is just under $100K. The board also voted to raise the deductible considerably.

We have a very clean record on claims and aren't in a fire zone or any other hazardous area. Based on what's been posted here, what I've read, this increase was to be ex Peter.

KerryL1 (California)
Posts: 14,550

Posted:

KerryL1 (California)
Posts: 14,550

Posted:

Jeez, my typos should say, "2025" and" to be expected."

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