HOA MASTER POLICY CHECKLIST

1.  Replacement cost of each building:  You must take into consideration the square footage, type of construction, # of stories, year built, etc.  A built-in inflaction factor to the policy can eliminate some of this but the values should be reviewed annually.

2.  Employee Dishonesty Limit:  this limit is normally based on the amount of money the association has in the bank.  The limit should be equal to the total value.

3.  Directors & Officers:  Believe it or not, some associations don't have this coverage.  The cost is minimal but is very important to protect the interests of the board members.

4.  Umbrella:  This limit of liability goes over and above the limits of the other casualty lines of insurance.  If there is a pool, roads, play ground equipment, bike trails, etc., then there is a possiblity of a claim arisng where the underlying limits of the General Liability policy could be exhausted.  If that's the case, the Umbrella limits (anywhere from $1M - $25M+ could be purchased to cover the excess claim costs.  This could be very important in the event of a claim arising from a drowning in a pool; an accident with a child on the playground; etc.  Most of the time a $1M Umbrella policy can be purchased for ~$500 per year.

5.  Backup of sewers or drains:  This is a very common occurence with HOA and would kick-in in the event of such backup.

6.  Earthquake coverage

7.  Flood coverage

8.  Wind coverage: Depending on where your buildings are located, this item is either included your you have to purchase it separately.  If purchased separately, you have a separate deductible (3%, 5%, 10% of total loss).  The price of this coverage can be high as it pays for damage from hurricanes, etc.  The price for this is often determined by the annual hurricane forecast.

9.  Wind deductible:  If you have a wind deductible, verify if it is a per occurance, or a per season deductible.

10.  Premium:  Do you feel you are paying too much for your insurance?  If so, please contact us or submit a quote application.

11.  Your agent:  Are you comfortable with your agenet?  This is onare at is overlooked the most.  Did you know that you can keep the same insurance company, but change agents?  This change can be made easily without lapse in coverage.

If you believe your agent is not answering your questions, or aren't confident in his/her abilities to understand the complex issues associated with HOA policies, then by all means, make the change. 

12.  Property Deductible:  Is your current deductible too low?  Sometimes you can raise your deductible and notice a significant decrease in your premium.     

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