Small homeowners association insurance coverage can be cheaper than a large association, but if you keep your coverage small in size too, it may not be enough when a claim arises. The easiest mistake to make when reviewing your HOA insurance policy is to think too small.
Don’t settle for small liability coverage. A slip-and-fall injury is one of the most common and most expensive risks that homeowners associations face. Hazards show up out of nowhere, even in the best-maintained properties. Wet, snowy, or icy sidewalks are accidents waiting to happen. Every HOA is just one slip away from a large claim. Large judgments are awarded on emotion, suffering, and “what should have been done.” It costs less than you’d think to increase your liability limits (per occurrence and aggregate) to meet modern realities. Adding an umbrella policy to fill in gaps and increase limits is also a good thing to consider.
Don’t settle for small coverage on your buildings. No one plans to not have enough coverage. It just sort of happens over time. If you haven’t had your association’s buildings appraised in the last couple of years, it’s a good idea to consider doing that. It’s also a good idea to check and see that you have Building Ordinance Coverage.
Building Ordinance Coverage has three parts:
- Coverage A, which covers rebuilding an undamaged part of a building that authorities required be torn down due to adjacent damage.
- Coverage B, which pays for the mess of demolition and cleanup.
- Coverage C, which pays for new building code requirements like updated sprinkler systems, hard-wired smoke detectors, handicapped accessibility, and other code upgrades.
Don’t settle for small coverage at the risk of a large claim later. Don’t risk a future association assessment to save a little premium today. Call your Deeley Client Advisor today at 410-213-5600. Read the full article by Bruce Sackrison here.