Tag Archive for basics

Lawyers review of condominium insurance needs

I subscribe to a number of condominium industry newsletters. One of the best is by industry leader Goodman, Shapiro and Lombardi.

You can subscribe here by going to this link.

GSL is starting a series on what is necessary and what you should have for insurance for your condominium association.

part one, talks about the basics and what you need to get by, and of course what makes you legal.

The highlights in this part include:

  1. insuring your condo association for Property, general liability,energy equipment,flood and directors & officers liability.
  2. What is required by Mass law 183A
  3. What the minimum crime coverage is required.
  4. Not falling into a gap with your unit owners homeowners policy ( HO-6 is the insurance lingo)

Check out their blog and sign up for their newsletter to read the rest of this series on insuring your condominium and your unit.

 

3 condo insurance questions

OK there are one million questions to ask, and one million things to know.

Let’s boil it down to 3 basic insurance questions:

1)    Does my insurance products match up with our By-Laws?

There are by-laws for a reason, You made them or follow them because they are the laws of the association or condominium. So if they are the law or the gospel, does your insurance product match up with what the law of the condo dictates. Many times it does not.

Look for a match of insurability. Make sure that the policy does not cover more of the building than necessary, or less that required. This is the old bare-walls vs All-in argument.

Do you need workers compensation? Do you have the right limits for crime insurance or theft of money.

2) Are we covered for a catastrophe?

Catastrophe exposures are real and can wipe you out. Flood, earthquake, wind and fire.

It never happens, or it can’t happen to me, or the price is not worth the risk are all excuses. You are in charge of maybe your biggest asset, and probably the biggest asset of your neighbors. Think about the catastrophe’s, and insure them properly.

3) Are the insurance limits adequate?

Do you insure the property for the Full replacement value? Have you had a consultant provide you with the value, not your agent. Are your liability limits high enough? The cost of excess limits, are cheap, and in today’s litigious society, the bigger the better when it comes to limits.

Three basic insurance questions to ask yourself, if you are handling the insurance for the condominium association you live in or manage.