What I Learned Seeing Insurance from the Carrier Side:
An Agent’s Perspective on Community Association Coverage
Luke Prendiville, Prendiville Insurance Agency
Before joining Prendiville Insurance Agency as an agent, I worked for Philadelphia Insurance, a carrier that provides policies for community associations. That experience gave me a behind-the- scenes look at how policies are underwritten and how claims decisions are made. With that perspective in mind, here are several core insurance concepts every community association board member and manager should understand when navigating coverage, claims, and renewals.
Understanding Claims: What Really Matters At the carrier level, claims fall
One of the most common mistakes boards make is delaying conversations about claims out of fear of premium increases or non-renewal. From a claims handling standpoint, failing to report a potentially covered claim can create far more serious issues later, including coverage disputes. When there is uncertainty, a timely discussion with the association’s insurance professional is almost always the safer course.
D&O Coverage: Notice Is Not Optional into distinct categories, each
evaluated under very different criteria by different types of adjustors, including liability and property.
Property claims involve physical damage to covered association property, such as water damage from a burst pipe or loss caused by wildfire. Coverage depends on the cause of loss, the definition of “covered property”, and whether the covered damage exceeds the applicable deductible.
General liability claims arise when a third party alleges bodily injury or property damage caused by the association’s operations or premises. These claims focus on allegations, and defense costs alone can be substantial even when liability is questionable.
Directors and Officers (D&O) liability claims involve allegations tied to board decisions, governance, enforcement actions, or alleged failures to act. From a carrier perspective, D&O claims are often driven by notice timing and policy conditions as much as the substance of the allegation itself.
28 May | June 2026
From the carrier side, D&O policies are particularly sensitive to notice provisions. D&O coverage is typically written on a claims- made basis, meaning when and how a claim or circumstance is reported matters just as much as what happened.
Boards sometimes hesitate to place a carrier on notice when a dispute seems minor or speculative. However, delayed notice is one of the most common reasons carriers deny D&O coverage. Even something as simple as a demand letter, threat of litigation, or allegation of discriminatory enforcement may trigger reporting obligations under the policy. When this happens, it is always wise to seek guidance from an experienced insurance professional on how to proceed.
What is Being Reviewed in Governing Documents
One of the clearest lessons from the carrier side is to what degree underwriters and claims adjustors adhere to a community’s governing documents. While many boards and managers think in terms of responsibilities determined by the maintenance obligations, underwriters and claims adjustors focus primarily on the insurance section.
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36
