Cheaper does not mean better.
Penny wise and pound foolish.
If you are aware that cutting coverage and buying the cheapest policy are not always the wisest choices for your condominium association, we can look at ways to trim the fat.
Condominiums are addicted to value and cheap prices. It stems from the fact that budgets are tight, no one wants their fees ti rise, even when services are becoming costlier, and the person making the buying decision has a fiduciary responsibility to do the best thing for the association that they manage.
7 things to look at first when shaving the fat off your premiums:
- Are you over insured? check your values
- is your deductible too low?
- Can you live without flood and earthquake?
- is the policy filled with special endorsements?
- Are you classified right? Many times a non combustible building has a brick rate, because the agent assumed it was just brick.
- Are you getting all the protection credits due you?
- Are you paying for coverage for third parties like the property manager.
It is more important to have the right coverage than to have the cheapest policy, but if you must cut the cost, there may be effective ways to handle it. Insure the big loss and assume the smaller ones.