How to review Condo Association Insurance

Whether your condo association is looking for a new Condo Association Insurance Policy or reviewing the one in place, here is a list of important points of any condo association insurance policy that should be reviewed annually.

1. Replacement cost of each condo building 

You must take into consideration the square footage, type of construction, number of stories, year built, or other factors of your condo association property or building.  A built in inflation factor to the condo association insurance policy can elimate some of this but the value should be reviewed every couple of years.
 
2. Employee Dishonesty Limit

This limit is normally based on the amount of money the condo association has in the bank. The limit should equal to the total value. For instance, if the condo association has over $1M in the bank, they have a much bigger exposure than condo associations with less money.  Either way, it is important to review this value.
 
3. HOA Directors & Officers Coverage

Believe it or not some condo associations and HOAs do not have this coverage included in their condo association insurance coverage. The cost is minimal but is very important as it protects the interests of the condo association and the condo board members.
 
4. Condo Association Insurance Umbrella

This limit of liabilty in a condo association insurance policy goes over and above the limits of the other casualty lines of condo association insurance coverage. If there is a pool, roads, play ground equipment, bike trails, etc. then there is a possibility of an insurance claim arising against the condo association where the underlining limits of their General Liability policy could be exhausted. If that is the case the Insurance Umbrella limits (anywhere from $1,000,000 to $25,000,000+) could be purchased to go above and beyond the underlining limits. This could be very important in the event of a big claim against a condo association arising from a drowning in a pool, and accident with a child on the playground on HOA or condo association property.  Most of the time a $1M umbrella can be purchased for around $500 a year.
 
5. Back-up of sewers or drains

This is a very common occurrence with condo associations and would kick-in in the event of a back up. Normally this condo association insurance coverage is one that needs to be added to the policy with limits of $25,000, $50,000 or $100,000.
 
6. Earthquake coverage
 
7. Flood coverage

Are you in a flood zone like Texas or Florida?  If so, work with your agent to make sure you're condo association insurance coverage is complete.
 
8. Wind coverage

Depending on where your HOA or Condo Assoication is located wind pool is either included or you have to purchase it seperately. If your condo assocation is located in Florida, Texas, East Coast or West Coast it is likely that you might have to purchase wind screen insurance seperately. When you do this you normally have a seperate deductible (ie. 3%, 5% 10% of total loss) specifically for that condo association insurance coverage. The price for this is normally very high because this pays for damage from wind (ie. hurricanes, etc.). The price for this is often determined by the "Hurricane Forecast".
 
9. Wind deductible

If you do have a wind deductible in your condo association insurance plan please see if it is a per occurrence or per season deductible. This can make a huge difference.
 
10. Premium

Do you feel you are paying too much for your insurance? If so, check out our Condo Association Insurance Finder.

11. Your Condo Association Insurance Agent

Are you comfortable with your condo association insurance agent? This is one that is over looked the most. Did you know that you can keep the same condo association insurance company but change agents? This can be done pretty easily without lapse in condo association insurance coverage, without payment interruption, etc., etc. If you believe you condo association insurance agent is not answering your questions or you feel that is not an "expert" and would like an agent that devotes all his time to Condo Association Insurance and other Habitational insurance then by all means make a change. Some of the money that you pay goes to the agent and if he is not doing a good job or if you feel uncomfortable make a change immediately.
 
12. Condo Association Insurance Property Deductible

Is your current Condo Association Insurance deductible too low/high? Sometimes you can raise your deductible up to $1,000 or $2,500 and you will notice a significant decrease in your condo association insurnance premium.