Condo insurance can be one of the most important yet confusing aspects of managing your Tampa-based condo association. It can be time-consuming and frustrating to ensure all your association’s needs are met, and a policy is chosen that both provides sufficient coverage and remains within budget.
While a Tampa condominium association management company can help you lead the way when choosing insurance, ensuring your condo association board members are aware of the following is essential.
Understanding what condo insurance covers, managing the decision-making process, and relaying the final policy choice to your condo association members are some of the simplest ways to ensure you choose the best insurance for your community. Keep reading as we dive into each of these areas!
Understand What Condo Association Insurance Covers
The goal of condo association insurance is to protect the association and residents from lawsuits and property damage in the associated areas.
At a minimum, condo association insurance should cover the unit’s exterior. This is called Bare Wall Policy, and it does not extend coverage to any interior parts, including fixtures the condo came with when bought.
At maximum, condo association insurance will cover the unit’s exterior and original interior fixtures. In addition to unit-specific coverage, a condo association’s policy may also cover common areas around the community and potential accidents on the property. This is called an All-In Policy.
Delegate Roles and Responsibilities in the Insurance Purchasing Decision
Now that you understand what condo association insurance covers, it is crucial to set clear processes within the purchasing decision. Addressing questions such as:
- Who is going to do the insurance provider research?
- Who is going to present the findings of coverage options?
- How is the final decision going to be made?
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These can be established at board meetings and documented to ensure accountability in the insurance choice. Utilizing resources like AM Best for an insurance comparison will make the process more manageable.
Check out other simple tips from us, a Tampa condo management company, in our Simple Guide to Choosing Condo Association Insurance.
Set Clear Insurance Needs and Spending Limits
While insurance plans are researched, it is also important to understand the financial responsibilities associated with getting an insurance plan for your community. This will help you budget for not only what the plan will cost moving forward but any needs to set up the insurance.
Needs can include the cost of assessments required to set up insurance and understanding how the policy will impact future budgets and plans. Be sure to pick a plan that will grow with your condo association.
It may be easy to jump to a new insurance policy just because it is cheaper, but coverage changes resulting from lower-cost policies may not benefit your long-term needs. Weigh your options with your budget to find the best plan for your association.
Understand the Policy You are Selecting
After you have done the legwork to determine the insurance provider you want to move forward with, it is as important to understand the final policy you are signing. Be prepared to interpret and know how benefits work in practice.
It will be essential to be able to answer any questions condo owners may have about the association’s insurance. Condo owners will also need to understand the personal insurance coverage they need with any association coverage plan changes.
Tampa condominium association management, like Wise Property Management, can help you with all your insurance needs. We are equipped with all the skills above to find the best coverage for your condo association.
Request a proposal today, or call us at (813) 968-5665 to learn more about our Tampa condo management companies.