Health & Fitness
Condo Associations: Eight Simple Tips to Finding the Best Insurance for Your Building
Condominium Associations must follow specific guidelines and state mandated statutes related to insurance. These simple tips will help you find the best coverage for your building.
The checklist below provides important tips for any Condominium Association that is contemplating changing insurance brokers or carriers. Remember to shop around for the best rates and coverage with carriers that specialize in condominium properties.
The four primary coverage areas for a condo association are as follows:
General Liability
Property
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Directors and Officers (D&O)
Crime/Fidelity
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Getting Started:
Review the Association's governing documents to determine what the Association is required to cover
Review state statutes such as the Georgia Condominium Act, to determine what your Association is required to cover
Have the community's building valuation completed by a third party
The loss history for your community will be requested by the agents that bid on the property (this will be a sign to your current carrier that you are shopping the policy so you may want to request this information well in advance of shopping your policy) This information will not only help you with the bidding process but it will also assist your community in evaluating aspects of your community that pose a higher-risk
Insurance consultants can be hired to aid the Association in the process of determining coverage needs, broker selection, and policy selection
If you are changing brokers, research the market for brokers that specialize in condominiums. The brokers will then bid your policy out to multiple carriers so limit the number of brokers that you select
Ask the insurance company to provide an apples to apples comparison to your current coverage and then provide any recommended changes or enhancements separately
Ask your broker for policies that provide more specific coverage for building furniture, fixtures and equipment; major heating and air systems, boiler & machinery coverage; art work; décor items, and much more.
Lisa Simmons Weibel is the President of Beacon Management Services, a comprehensive real estate management company specializing in condominiums, mixed-use developments, associations, master planned communities and other properties of distinction.
