Risk of Underinsurance in a Disaster  Continued From Page 19


   it is a new policy or a renewal. Getting the right insurance policy in place that meets your association’s needs, is crucial to protect the association, the board, the building(s) and the owners and residents. Your insurance professionals can guide  affect the association under certain disaster or loss situation.


What To Look For In Coverage


 policy is compliant with the community’s governing documents. More than likely, an association’s declarations are going to state what level and type of coverage is  insurance in place, the insurance broker will ask for a copy of the association’s declarations to make sure the policy they are proposing is in line with them.  compliant with the governing documents.


 to consider when making insurance decisions is what coverage is included  asbestos removal, whether the building(s) as a whole are covered at their full replacement value and more.  were elements that were covered  the Association was really negatively 


  included furniture in all units and all personal belongings   not covered by the insurance policy, it still needed to take   needed to continue to pay their assessments to cover content removal, even though they could not live in the building.


Other Important Things To Consider


Asbestos removal is something to be considered when your policy is being put together. Your community may be new and not need to have asbestos removal included in the policy. However, if your community was built with asbestos containing products, you will want to have asbestos  especially important if you have an older community that was built when asbestos products were used during the building process.


 there was a fair amount of asbestos in the  to be professionally removed from the    asbestos removal included, but not enough for removal in all units and  element that had to be paid for by


the owner assessments even though nobody could live in the building. As you can imagine, asbestos removal can add up to a large cost.


Things To Consider When Putting An Insurance Policy In Place:


Is the Association’s insurance policy compliant with the


association’s governing documents?


When was the last time the community was properly valuated?


Does the board want to add coverage, such as  mechanical breakdowns, asbestos removal, etc?


20 Community Associations Journal | September 2020


Is the association’s deductible set at


the best rate for the association’s needs?


When comparing


insurance coverage proposals, are the


proposals apples to apples?


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