Having the right insurance coverage is essential for community associations to protect their assets, mitigate financial risks, and fulfill legal obligations – ultimately ensuring the stability and well-being of the association and its residents. It’s important to review the following items and have them on hand in order to obtain the right insurance policies for your particular building.
- Summary/Certificates of Insurance
- Copies of all policies in place
- How are the insurance premiums currently being paid? Financed, paid in full, automatic withdrawal?
- Five years of loss runs
- Information on any previous or ongoing claims
- Are there any employees?
- Number of employees and their positions at the building
- Are there Worker’s Compensation and/or Disability policies in place?
- Tax ID#
- Building updates – electric, plumbing, roof, heating information
- Mortgagee information
- Bylaws
- Offering plan
- Confirm that your management company is an Additional Insured on the building’s General Liability and Directors & Officer’s Liability policies
Along with this list, we recommend reviewing the building’s bylaws. Is mandatory Homeowner’s Insurance/Renters Insurance required for all residents? If not, we strongly suggest discussing this with the Board and amending the bylaws to better protect the association, residents, and property management firm, as well as keep costs down for all involved.
Mackoul is here to help monitor residents’ insurance with our Homeowners Insurance Monitoring program. Learn more here. To download a copy of this checklist, please click here, and reach out to me with questions anytime.
