Tag Archive for pricing

Getting a insurance quote for your condominium

You are sitting around at your latest condo board meeting. You are reviewing the budget and your meager finances.

Looks like you might have to increase monthly fees again. Everyone groans!!  sighs!! and mumbles under their breath.

“Hold the phone” someone says. Before we tax the owners again, let’s look at our expenses.

Running a condo is running a business.

You look at one of your biggest expenses and there is the elephant in the room. Insurance is big. Necessary, but big.

There are 100′s of articles talking about condominium insurance and 100′s of agents and companies that want your business. So how do you go about asking for a quote?

DO”S

  1. Do go to an expert in condominium insurance
  2. Do put someone in charge that knows insurance
  3. Do an evaluation of needs before getting quotes
  4. Do due dilligence

DON’TS

  1. Don’t rely solely on your property manager
  2. Don’t rely just on your current agent
  3. Don’t ask for an apples to apples quote
  4. Don’t always take the cheapest price
  5. Don’t take away coverage w/o a lot of thought
  6. Don’t be afraid to fire a broker for not doing their job

 

There are many things to consider when shopping for insurance. remember that you are probably not an expert, and you rely on others expertise. The problem is that the agent is probably not an expert, the property manager is probably not a licensed insurance agent or counselor, and don’t forget that people are people and they look out for their best interest. Agents might go with the company with the highest commission, or the property manager might only use his/her buddy.

It is your money and your business, and your exposures at risk. Treat it with care and caution and do the best for YOU and YOUR association.

Does a restaurant increase my condominium insurance

Does a restaurant in the condominium cause the insurance premiums to go up?

Good question, but every company might have a different answer.

You do get retail and restaurants in condominiums in the more urban areas, like New York or Boston, or L.A. Most of these buildings are converted buildings and the restaurant already existed.

There are three scenarios:

  1. The company rates the building specifically and charges the restaurant differently than the rest of the building.
  2. The company allows the restaurant, but does not charge any more or less for the restaurant from the office and residential units.
  3. The company will not insure you with a restaurant.

Actually number 3 is most likely. Insurers who insure condominiums, usually contemplate the fact that they are residential and will shy away from the building with the hazardous restaurant.

The million dollar question, is if it costs more, then who bears the burden, and if the restaurant causes the premiums to be higher if it were not there, because it now does not qualify for preferred status, then who pays what?

That is up to the board and the by-laws to decide. A retail space (traffic) Office ( traffic) and restaurant ( traffic, fire,liability …) definitively increase the exposures for a condominium.