- Research condo association insurance companies before buying homeowners association insurance. The loss ratio varies greatly from company to company making the premiums also vary.
- Shop around for an independent condo association insurance agent who has extensive knowledge on homeowners association insurance. Some of the larger insurance companies like State Farm and Travelers offer master insurance policies specifically designed for HOAs. Study condo association insurance policies thoroughly. Make sure your policy has fire and hazard, directors and officers liability, employee dishonesty and general liability coverage.
- Consult with your condo association insurance agent to see if you need additional coverage such as earthquake, building ordinance or law coverage. Earthquake coverage is only purchased if you live in a region that is likely to have earthquakes. Earthquake insurance is usually 10 percent of your premium. Building ordinance or law coverage is always good to have, as it covers increased construction cost if it is necessary to make building changes due to zone or building laws.
- Determine what your insurance premium should be with your agent. Deductibles start at $2,500. Of course the higher the premium, the less the homeowners association will have to come up with out of pocket.
- Explain thoroughly to all condo association members in the plan that they must carry homeowners insurance and that the homeowners association insurance does not cover their contents or personal belongings.
- Delegate condo board of directors and officers as employees, so they can be covered under the employee dishonesty section of the homeowners association insurance.