The Communicator - Volume 2, Issue 1 - (Page 8)

THE INSURANCE INDUSTRY is very competitive; agencies want to sell whatever they can. One basic truth that most insurance agents can agree upon is that, in the common interest development (CID) field, an association should use a specialist. There are some basic interview questions that the management company or board of directors should ask an insurance agent before asking that agent to quote insurance coverage for a homeowners association — When was the insurance agency established? How long has the account manager/salesperson been licensed? How many homeowner associations does the agency handle? And, do they have any references that are other associations? During the competitive bid process, we find that many insurance agencies use the word “included” in their proposals to describe some specific types of coverage. “Included” is generally understood to mean something that has come pre-packaged or integrated into a system. The master insurance policy for a homeowners association is generally known as a “package.” A good number of package policies automatically include some type of embedded insurance coverage that is the same everywhere, whether the policy is purchased in California or in Florida. Losses covered by this “included” insurance occur from time to time, but they do not offer great monetary exposure to the insured association. For example, most policies include limited coverage for fine arts and furs. In the area of property and liability coverage, condominium associations, planned development attached dwellings and commercial condominiums are more susceptible to losses related to the following coverage: building ordinance coverage, sewer, drain backup coverage, and equipment breakdown. CIDs in general should utilize a standalone Directors and Officers Liability coverage and Fidelity Bond rather than the coverage that is “included” as part of the insurance package policy. Does Your Insurance Agent Know Something You Don’t? A checklist for management companies and boards of directors for purchasing required insurance coverage. By Dennis Socher © Bnil esh | A : D re genc y ams tim e.com SO WHAT ARE THESE COVERAGES AND WHAT SHOULD YOU LOOK FOR? Building Ordinance Coverage A, B and C. This coverage is very important 8 • The Communicator

Table of Contents Feed for the Digital Edition of The Communicator - Volume 2, Issue 1

The Communicator - Volume 2, Issue 1 Contents President’s Message Does Your Insurance Agent Know Something You Don’t? Lien Stripping and Chapter 13 Bankruptcies Mortgage Crisis Impacts Directors Legislative Bill Status Report Annual Holiday Awards Banquet & Casino Night 2009 Events & Educational Calendar New Members Index to Advertisers

The Communicator - Volume 2, Issue 1

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