A growing trend in condominiums, cooperatives, and community associations is a requirement in the governing documents for unit owners and/or tenants to maintain their own personal homeowner’s insurance. This is a great idea, and if your building does not require insurance for the residents, then now is the time to get that process started.
There are a lot of benefits to everyone in the building carrying their own insurance. The first one is that $*!# happens, and when it happens, you want to be prepared as best you can.
Whether it is big or small, the last thing you need during a claim as a unit owner is to also have a conflict with your neighbor. 99% of the time, they didn’t intentionally flood your unit below them, and they are just as upset about the damage as you are. Without insurance, you can point fingers and yell at each other all you want, and nothing will get accomplished. With insurance, you will receive assistance from your brokers and the adjustors of the claim to help explain who is responsible for what. Oftentimes, some of the damages end up falling back on the association’s master policy. Avoiding unnecessary conflict with your neighbors within your building is crucial.
The next benefit to everyone carrying their own insurance is the most obvious one. Having insurance will help your unit to be repaired after the claim occurs so that are not left with a huge expense that you cannot afford. You cannot predict exactly when a claim is going to occur, and the insurance policy can’t prevent a disaster, but it can help provide peace of mind.
Here at Mackoul Risk Solutions, we offer Homeowner Insurance Monitoring. Where for an additional fee, we will make sure that all of the units within your building have insurance and are maintaining the necessary coverages. Here is how it works…
- Initial Monitoring Phase:
- The board and/or property manager will notify residents that they have hired Mackoul Risk Solutions to supply and monitor proof of insurance.
- Mackoul will upload each resident via spreadsheet onto our tracking platform. An email address will need to be provided for residents to be registered in the program. Each owner will then receive a request to submit proof of insurance.
- If a unit owner fails to respond to the first request, an additional five requests for proof of insurance will be sent.
- Owners who have supplied proof of insurance but don’t meet the association’s requirements will receive notice that they are not in compliance and the reasoning. They will be requested to resubmit their amended policy.
- Mackoul will provide the board or property manager with a report 30 days after the beginning of the program.
Monthly Maintenance:
Over the course of a one-year period starting from the date the contract is signed and the process begins, at no additional cost, we will continue to monitor each resident’s renewal:
- Each resident will receive notification 30 days before their renewal for proof of coverage that meets the association’s requirements.
- If proof is not supplied, eight additional requests will be sent.
- The board or property manager will get subsequent reports detailing who is and who is non-compliant for the duration of the contract.
