The Holidays are upon us and with that brings risk.
What is risk? Risk is an insurance term for the chance that something might happen.
What could go wrong at the holidays and Christmas?
1. Live errr dead and dry Christmas trees indoors.( have you ever lit fore to a dead Christmas tree? they go up like a bomb)
2. Over loaded sockets. More lights, more cords, more chance of an electrical fire.
3. fireplaces. We look at them all year until we think we need to have a little holiday ambience. Then we realize that the flue has not been cleaned in years, or that there are wholes in the brick that release sparks into the condo.
4. We go away. What better time to see the relatives out of state, or go on vacation to get away from all the nonsense. Did you keep the heat on? Did you turn off the water to the washing machine, did you secure the condo from thieves?
These are a few things to keep in mind at the holidays at your condo unit and association.
Happy Holidays from the Condominium Insurance review
Keeping you safe and informed 365 days a year.
In the northern states, snow can be one of the biggest budget busters for a condominium complex.
What can you do to prevent it?
- Properly estimate and reserve. There is data all over the internet that will tell you what the average snowfall is in your area. If you know your costs, put two and two together and you can estimate your budget.
- Work a deal. If you know the average and you know what your budget is, then talk to your snow removal contractor and make a deal. We will pay you this much for the snow removal. If it snows more, we win, if it snows less, you win. It is an equal gamble for both parties.
- Transfer the cost. If you pay to shovel driveways, or walks, transfer the responsibility to the unit owners.
- Assess. If you go over budget, do what we always do, send a bill out and apportion the cost to all the owners.
- Insurance. Snow insurance should be an option on everybody’s package policy. But it is only available through specialty weather insurance companies.
How does snow insurance work?
decide how much you are willing to pay. Decide on your threshold. and insure the difference.
- The amount of coverage that you would like to be reimbursed typically in a cost per inch for removal or cost per storm for removal.
- If selecting the cost per inch for removal product then a snow amount threshold would be determined such that reimbursement would kick in for every inch of snow that exceeds the threshold (i.e. if more than 45 inches of snow falls during a winter season then you would be reimbursed $2,500 per inch over that set threshold).
- If selecting the cost per storm removal product then a number of storms threshold would be determined such that reimbursement would kick in for every storm that exceeds the threshold (i.e. if more than 3 occurrences of a 6 inch storm occur during a winter season then you would be reimbursed $150,000 per storm over that set threshold).
Use these risk management tips to avoid a budget busting winter season.