One of the chief duties of the HOA is to preserve the value of the community’s property, and one of the best ways to do that is to invest in some good HOA insurance—but is your community association truly getting the best, most cost-effective rate on your insurance? The beginning of a new year is as good a time as any to review your insurance policy and weight the options available to you, and possibly even secure a better deal for your HOA. Here are five tips for doing just that.
- Shop around. This may seem like a no-brainer, but it is amazing how many community associations underestimate just how complicated HOA insurance can be. Shop around at different companies and check out different policy options.
- Verify your estimate. The amount of money you pay for your HOA insurance is based, in part, on the estimate of how much it would cost the insurance company to repair or rebuild your property. However, these estimates are very frequently wrong! Look over the estimate you were given and see that the figures—number of floors, square footage, etc.—are all correct. In light of economic tumult, you might even get your property re-appraised and protest the estimate on your property. This can potentially save you tons of money on insurance.
- Review your governing documents. They probably specify a minimum amount that you are expected to insure. Make sure you meet this quota, but also that you don’t pay unnecessary costs by going too far over the quota!
- Change your deductible. That is, assuming you have the necessary funds in your bank account to cover it!
- Remember that there is more to an insurance company than just premium costs. Also look at their payment history and make certain that you are truly getting good protection for your community—otherwise, it will all be a waste!