Condo Q&A

Should HOA submit insurance claim and risk increased premium?

Written by CondoAssociation.com | Mon, Oct 3, 2011 @ 10:55 AM

Our HOA has an insurance policy that covers common areas with a $1000 deductible. The question that has recently come up is whether or not to submit an insurance claim to recoup losses of approx $7000. The concern seems to be that the insurance premiums will go up and/or the policy would be cancelled. Is there a rule of thumb used to determine when to submit a claim and when to pay the expenses from the HOA income?