Insurance news and information

Too often I’m faced with condo associations that make a critical mistake when insuring their properties – they simply renew without looking. It’s critical because in many cases, policies are renewed year after year without regard to changing property values, changing conditions, aging equipment and facilities, or changing occupancy levels.

And in today’s uncertain real estate market, those criteria could mean you’re either underinsured and assuming more risk than you need to or you’re paying for too much coverage. Let’s look at it from an underinsured perspective. Suppose your association purchased a new policy five years ago. At that time, the property consisted of three buildings, a pool, and six acres with a paved walking trail. The property value then was $1.2 million. Read more…

Having an apartment or condo association insurance policy isn’t a guarantee that your association is covered should an event occur. It’s a guarantee that you have some type of coverage. And between the two forms of association insurance coverage, the differences are great.

All risk coverage typically covers your association from all perils. There are exclusions, such as earthquakes, acts of war, or terrorism, but the policy covers most events that can befall your property. In fact, the standard all risks policy spells out coverage exclusions rather than listing every covered event. If it’s not excluded, it’s covered. Read more…

Tough economic times often force tough economic decisions for apartment and homeowner associations. Board members, eager to trim expenses, will often look to insurance policies for ways to decrease coverage and lower premiums.

Too often associations have claims denied because the coverage they once had was dropped due to budget concerns. Also, many association boards failed to understand critical elements of their policies, leaving them with unnecessary or unknown gaps in coverage. The most common areas that cause trouble for associations include: Read more…

The bills still have to be paid, recession be damned! Yet too often condo associations straddle the line between collection and having their late fee charges deemed unreasonable in an attempt to collect late association fees or other property-related bills.

Associations are allowed to charge reasonable late fees. But the definition of reasonable, and the frequency and application of reasonable, could land your association in hot water should you not lay out your terms from the start. Late fees should not outpace the amount due, nor should they be so high that collection becomes impossible. Many associations assess a $25 late fee, which meets the reasonable criteria.

Read more…

When does your association make an exception to the restricted building or property access regulations? When the government is doing the asking.

Once again, the government is ramping up efforts to tally the country’s population. With the 2010 census about to get underway, the US Census Bureau is asking apartment and condo associations to help them reach as many residents as possible. Since participation in the census is a federal requirement, associations need to determine how census workers will gain access, especially in secured facilities. Read more…