Condo Association Insurance -- Annual Review

Condo association insurance is often taken for granted or overlooked until it's too late. Whether it is property and casualty (P + C) or directors and officers (D + O), condo association insurance should be reviewed each year to determne whether it is sufficient for your association.

A good starting point for a condo association insurance review is the governing documents for your condo association (or planned unit development). It is prudent to review these documents to see what is required for condo association insurance. You may also want to consult with your condo association's attorney to see if there are any state requirements for insurance coverage.

Once you have an understanding of the minimum requirements for condo association insurance, you can identify any gaps in coverage, the quality of the coverage (e.g. insurance company rating), and the pricing of condo association insurance coverage.

Often times, an association has gone through changes with capital improvements, changes to replacement cost, and other factors that may make your current condo association policy insufficient for your needs. And of course, it is always a good idea to get some competitive quotes for condo association insurance every couple of years.

I know we have some very well board members in our online community. What other steps would you recommed in an annual review of condo association insurance policies?