As a community association board member, the countless hours you volunteer go toward assisting with a very important objective – creating a safe and vibrant community. In many cases, this means assessing your association’s insurance policies to guarantee that your community is fully covered, appropriately insured and receiving the best value for the cost.
“Insurance is about more than protection from loss,” said Sean Kent, CPCU – vice president of FS Insurance Brokers, a licensed insurance brokerage and affiliate of FirstService Residential. “It’s a significant line item within your budget, so identifying the greatest coverage at the lowest cost can grant you funds that can be allocated elsewhere – or better yet, saved. Moreover, the right coverage will protect you from unexpected and unpleasant surprises in the event of a loss.”
Strict attention to your association’s insurance coverage pays – quite literally. With the right mix, you’ll save money and enjoy the peace of mind that comes with having the coverage you need when you need it. Here are a few areas that you should consider when thinking about your community’s insurance.
Let’s say there’s damage to your building in a fire or flood. Your property insurance will cover the cost of the repairs you need, right?
Not always. Your policy will only pay for rebuilding to original standards. If your structures were made before current building codes, then you’ll experience a serious shortfall – effectively, your policy won’t cover repairs or reconstruction up to code. The cost to build to current codes is almost always greater than reconstruction to old standards. To cover this gap, you’ll need Building Ordinance & Law Coverage, Parts A, B & C.