Whether your association board works with a professional manager or self-manages the association, it’s likely that the board will still need the services of other professionals like an Insurance Agent. The right insurance agent, when partnered with the board will provide invaluable resources to your association.
Working With Professional Partners: The Insurance Agent
Insurance agents, like CPAs and lawyers, have a broad range of specialties and areas of expertise. Fortunately for community associations, insurance specifically for community associations is one of them.
Choose an insurance agent that understands HOA and condominium coverage. Your management company should be able to contact multiple agencies in order to secure a competitive bid. Make sure that homeowners purchase the correct insurance to match up with the HOA policy requirements.
What to Expect From Your Association’s Insurance Agent
What Insurance Agents Do for Associations
- Review the association’s documents
- Recommend the legal minimum insurance requirement
- Identify additional coverage that might be needed.
- Verify the property values for replacement and/or reproduction – This can be accomplished through an appraisal service, a company survey, or various others means.
- Review the association’s fidelity bond,
- Ensure that all parties (board members, committee members, and managers) are provided with access to the association’s assets.
- Discuss the lending institution guidelines for selecting a bond limit if it is not specified in the association’s policies.
- Obtain premium quotations, and help the board select the program that best suits the association’s needs.
- Explain to the board, in plain English, the coverage being offered as well as the exclusions and limitations of each.
- Educate residents about the association’s policy at an association meeting
- Prepare a written fact sheet about the association’s policy
- Explain where the association’s coverage stops and where the residents’ and owners’ responsibilities begin.
- Provide certificates of insurance or evidence of coverage to lenders.
- Assist the board in drafting a resolution stating how claims deductibles will be paid.
- Review the association’s claims annually and recommend how claims can be effectively mitigated.
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A great insurance agent will aid in the smooth operation of your community. Join the Acri Newsletter service and learn more about how Acri can assist you with professional partners. Acri knows who to use and when to deploy qualified service providers in a timely yet economically feasible manner.