Mangement Companies Insurance

Dear HOATalk

Our HOA is looking into changing our Mgmt company. The problem we are having is the other Mgmt companies have refused to add us to their policy as a added insured.
Since we carry D&O insurance separately for our officers (one Mill each) Why is it necessary for the Mgmt Co. to insure us as well?

Is this a normal practice for the Mgmt Co to add us to their policy also.?

NancyM2

Susan ~ I'm not sure you understand (or if I do) But they we asking the Mgmt Co to add us to their policy as a added insured ~
NancyM2

People ask to be added as "Additional Insured" all the time without truly knowing what they are asking for. Essentially when you are added as an Additional Insured on someones policy they are *sharing* their coverage with you. It dilutes the coverage.

Look at it this way: If the Mgmt company *shared* their coverage with ALL their customers, it would dilute it a lot! It may happen, but as an insurance agent I would advise the Mgmt company to avoid adding customers as an Additional Insured if they don't have to. It may also cost the Mgmt $$ to add an Additional Insured, it just depends on the insurance company.

So to answer your question, no it is not normal practice for a Mgmt Co. to add you to their policy.

Dear Group ~~ & HB

What they were asking for was the Mgmt Co to put us on their policy as an "additional insured" Me thinks too much insurance makes the insurance companies rich, and us poor.

What I was asking was how many out there have the Mgmt co add their HOA to their insurance ~ We have always added the Mgmt Co to our policy as standard practicr however.

The board is telling us they can't change Mgmt Companies because the new ones won't put us on as "additional insured" ~~ Changing Mgmt Co's would save us about 4K a month ~~ The board has made friends with the old Mgmt Co, and is looking for excuses not to change.

NancyM2

In re-reading your post ... do you ONLY have independent D&O insurance ... no General Liability or Auto Liability in your HOA's name ... only has additional insured under the MC?

I'm not sure if it matters, but our bylaws specifically say that the ASSOCIATION shall carry the coverage.

I think I misunderstood the question; sorry!
Linda

Hi Mary

Apparently no one else has heard of it either ~ Me thinks our BOD is trying to look for excuses to not change our present MC ~ to much insurance when it is not necessary.

Our high paid attorney is telling the board she wouldn't feel comfortable unless the Mgmt Co agrees to indemenify us with additional insurance. ~~ But then we must remember the Mgmt Co is a collage friend of the Attorney, she is the one that reccomended them, with no other RFQ's sent out... Their price came in at double what the last MC charged us. That is why the homeowners want to change.

NancyM2