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INSURANCE
RISKS
Insurance costs are a big part of an
association's budget, steadily increasing as
market demands strengthen. By delaying
spring maintenance, your insurance coverage
will likely be affected. Not only can ignored
maintenance erode homeowners' trust in the
board and further damage vital structures,
but it also carries financial risks through
insurance-related consequences.
• Large claims. Submitting a large claim
to your insurance company may prompt
an investigation into how well—and how
consistently—your community has been
maintained. If you're unable to prove that
you've properly maintained the structures in
question, your claim may be denied.
• Insurance deductible & premium increases.
Your deductible and premium reflect the
current state of your community, with safety
and structural integrity being paramount.
The greater the risks, the greater the
insurance costs.
• Personal liability concerns for board
members. Director and officer (D&O)
policies might exclude coverage for claims
involving willful misconduct.
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