What Managers and Boards Need to Know About Filing Insurance Claims
Jamie Hackwith, CMCA, AMS, PCAM, Prendiville Insurance Agency
Many community managers and board members share the same uncertainty when it comes to insurance claims: when should a claim actually be fi led, and what does it really mean to notify the carrier? Even seasoned professionals sometimes believe that simply passing information to the association’s insurance agent is enough to place the carrier on notice. In reality, no claim exists until notice is formally submitted to the carrier, and once that happens, the carrier is required to open a claim fi le, regardless of whether it was intended as “notice only.”
This article aims to clear up the confusion by breaking down the most common types of claims that affect community associations and explaining what it means to “put the carrier on notice.” Proper reporting helps protect coverage, reduce liability, and strengthen the association’s ability to respond effectively when problems arise.
Why Timely Filing Keeps You Covered
Filing claims promptly and correctly is critical to protecting the interests of the association. When notice is delayed or mishandled, the carrier may deny coverage, leaving the association fi nancially responsible for the loss. Late reporting can also complicate renewals or affect future insurability.
The risks extend beyond property repairs or defense costs. If a claim is denied or overlooked, the association may face lawsuits or unexpected expenses that could have been avoided with timely action. That ripple effect increases costs for owners and undermines confi dence in both the board and management.
Carriers must follow strict rules for claim handling, and if the association misses reporting deadlines (or assumes that “informing the agent” is enough) coverage may be jeopardized. Understanding these requirements is the fi rst step in ensuring that coverage is preserved when it matters most.
22 July |August 2026
These concerns often lead associations to hesitate about when to give notice. Delaying notice often creates greater risk than reporting a claim that ultimately does not develop. When notice is late, the association may lose coverage options entirely. By contrast, reporting a potential claim early preserves the carrier’s ability to evaluate the situation and close the fi le if no coverage or payment is ultimately required.
There is also a common misconception that simply fi ling a claim automatically results in higher premiums. While claims history is one of many factors carriers consider at renewal, reporting a claim in itself does not automatically lead to increased premiums or non-renewal.
The Main Types of Claims (Property, General Liability, and D&O)
Property claims are the most common. These include events such as water intrusion, fi re, storm damage, or vandalism. In short, if something breaks, burns, or bursts, it’s probably a property claim worth reporting if the damage meets or might exceed the deductible.
General Liability (GL) claims cover situations where the association is alleged to have caused injury or damage to others. Common examples include slip-and-fall injuries or damage to a homeowner’s property. Nuisance issues, such as noise or odors, may also trigger a GL claim if a homeowner alleges that the association’s actions (or inactions) caused them harm. For example, loss of quiet enjoyment, stress, or other personal injury. The key trigger is any allegation of bodily injury, property damage, or personal injury, even if the facts are unclear.
a fi nger at the association, it may be time to consult the association’s legal counsel and the insurance agent.
If someone is pointing
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