DIG Insurance & Business Magazine Spring 2022 | Page 6

Associations That Go In With Maintenance Plans And Open Communication Are Better Positioned In A Hard Market .
COMMUNITY ASSOCIATIONS

Prepare For Renewal

BY : MEGAN MULLER , CIC SENIOR CLIENT ADVISOR

Associations That Go In With Maintenance Plans And Open Communication Are Better Positioned In A Hard Market .

BY : HOPE THOMAS CLIENT ADVISOR

You ’ re a few months out from insurance renewal for your condominium or homeowners ’ association . How can you be sure you ’ re getting a competitive premium and comprehensive coverage ? Especially when a record number of storms across the country are driving up insurance costs by an average of 15 %, and a hard market , rising inflation , lack of labor , and increased material expenses are turning up the financial pressure .

WHAT ’ S THE SOLUTION ?
Go in prepared . Build a partnership . Be proactive .
While we are seeing premium increases even on no-claim accounts , there are ways to position your association to effectively manage risk , mitigate losses , and minimize price hikes .
PLAN FOR MAINTENANCE
You can show an underwriter you ’ re taking good care of the property by having a written maintenance program that addresses major appliances , mechanicals and infrastructure . A thoughtful maintenance plan should include a replacement schedule , such as when hot water heaters in individual units will be addressed . Because water damage is one of the most common claims , an underwriter wants to see that you ’ re acknowledging the risk with a plan . Other maintenance points to include are roofing , common areas , HVAC , electrical components , sprinkler systems , parking lots and garages .
UPDATE ASSOCIATION POLICIES
As you prepare for renewal , review association policies and procedures to identify areas that need to be added or enhanced . For example , what is your crime policy ? What safeguards are in place to reduce crime , and how will the association respond if an incident occurs ? What rules are in place for utilizing common areas ? Did you adapt your health and safety procedures to align with CDC requirements ?
IDENTIFY PROPERTY IMPROVEMENTS
When was the last time you updated your roof , or replaced water heaters or HVAC units ? Underwriters look at buildings with these improvements as more favorable and less likely to have a claim , which helps with premiums . Did you add an indoor or outdoor pool ? A new socially distanced gathering space ? As you enhance the property , have a discussion with your insurance advisor . These changes increase your value , which could result in needing a higher limit to ensure there are no gaps in coverage . You ’ ll end up paying significantly more out of pocket if you end up filing a claim and your limit is too low .
GROW A PARTNERSHIP
Communication is the key . Your insurance advisor is a knowledgeable resource who can help you identify ways to improve a maintenance plan , reduce risk and get the coverage your association needs . By understanding the scope of your property , work completed , and plans for the future , your agent can create a narrative for underwriters that will position you to reduce losses and expenses so you can focus on offering an attractive environment for those who call your property home . +
Be Sure
Checklist
• Identify building updates and enhancements .
• Review maintenance plans and ensure that there are replacement schedules in place .
• Avoid cutting corners on coverage , otherwise you could put the association at risk .
Megan Muller joined Deeley in 2014 and specializes in condominiums , human services and non-profits . She volunteers on the board of the Lower Shore Clinic in Salisbury , MD . 410.213.5578 mmuller @ deeleyinsurance . com
Hope Thomas joined Deeley in 2016 as a Client Advisor . She has 22 years of media consulting and sales experience . She resides in West Ocean City , MD with her husband and dog . Hope enjoys working with clients in the condominiums , amusements , and hospitality industries . 410-213-5552 hthomas @ deeleyinsurance . com
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