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…
- Mackoul will review the applicable section of the bylaws or other governing documents that shows the insurance requirements.
- Owners will be loaded into our tracking platform.
- We will send three emails, if necessary, requiring either a Certificate of Insurance or copies of owner’s Declaration Pages showing the required insurance coverages and limits.
- After each email, an update will be provided to the board or management firm detailing who is in compliance, who has not complied, and who has responded but does not currently meet the necessary requirements.
- Proof of all supplied documentation will be listed on our platform, and you will be provided with access to view all documentation and compliance reports.
- Over the course of the year, we will follow up with unit owners/shareholders 30 days prior to their renewal for proof of coverage, with two additional reminders sent if necessary.
- Favorable pricing for current clients.