Table of Contents [ Hide ]
1. Assess the specific needs of the community
2. Civil liability
3. Coverage against material damage
4. Board of Directors Liability Insurance
5. Quotes and costs
6. Insurer experience
7. Clauses and exclusions
8. Additional coverage
9. Periodic review
10. Professional advice
1. Assess the specific needs of the community
Every homeowners association is unique, and insurance needs can vary significantly. Before making a decision, it's essential to carefully evaluate the specific needs of the community. How many buildings are on the property? How many housing units or commercial premises are there? What type of facilities and common areas need to be covered? By understanding these needs, you'll be able to select a policy that's the perfect fit.
2. Civil liability
One of the most critical elements of homeowners association insurance is liability coverage. This coverage protects the association in the event that someone is injured on the property and files a lawsuit. Make sure the policy provides adequate coverage to protect the association from potential lawsuits and associated costs.
3. Coverage against material damage
Property damage to buildings and common areas can be costly to repair. Make sure the policy includes adequate coverage for damage caused by fire, flood, vandalism or other events. Also, review the policy's exclusions and limitations to make sure you fully understand what is and isn't covered.
4. Board of Directors Liability Insurance
Board members of a homeowners association may face lawsuits for decisions or actions they take on behalf of the association. Liability insurance that covers the board of directors will protect them from potential lawsuits and associated costs. Make sure your policy includes this coverage.
5. Quotes and costs
Comparing quotes from different insurance companies is essential to finding the best deal. However, it's not just about choosing the cheapest option. Consider the relationship between price and coverage offered. Sometimes, paying a little more for more comprehensive coverage can save money in the long run if a claim occurs.
6. Insurer experience
The experience and reputation of the insurer are critical factors to consider. Research the insurance company and review its track record in handling claims and customer satisfaction. Opting for an insurance company with a solid track record can provide greater peace of mind to the community.
7. Clauses and exclusions
Before signing an insurance contract, carefully read all the clauses and exclusions in the policy. Make sure you fully understand what is covered and what is not. If there are ambiguous clauses or exclusions that you feel are unfair, speak to the insurance company to clarify any concerns before signing.
