1. Identify Your Community's Basic
Insurance Requirements
Before taking any action, refer to your governing documents,
specifically the Covenants, Codes and Restrictions (a.k.a. CC&Rs
or Deed Restrictions) because they will mention any insurance
requirements specific to your community. It's also important
to check your state laws because some states have additional
requirements every community is obligated to meet; California,
for example, requires an association with more than 100 units to
carry $2 million in liability coverage to protect homeowners from
excess claims.
Becoming aware of these basic insurance standards is only the
first step in building an insurance package that will fully protect
the association. The next action to take in understanding the
scope of your community's insurance obligation is to identify all
areas of risk through a process called risk management.
Tip
Create a summary document of
insurance requirements to reference
when comparing proposals.
4 Steps to Ensure Comprehensive Community Insurance Coverage
