Association boards are made up of neighbors who agreed to help. They end up making decisions about millions of dollars of shared property with limited time and no formal training. Renewal season is where that gap shows.
Here are five questions I would want a board to answer well before the renewal package lands.
1. Are the insured values current?
Building costs change. If the replacement cost on file is out of date, the association may be underinsured without knowing it. Ask when the values were last checked and by whom.
2. Could we pay the storm deductible?
Many associations carry a percentage deductible for wind. Look at the dollar amount that percentage produces today. Then ask where the money would come from. A special assessment on short notice is a hard conversation.
3. Do our directors and officers have protection?
Board members can be named personally in disputes. Confirm that the association carries coverage for board decisions and that the limits make sense for its size.
4. Are our reserves and inspections on track?
Many states have added requirements for condominium inspections and reserve funding in recent years. Rules continue to change, so confirm the details with the association’s attorney. What the board should know is whether the work is scheduled, funded and documented.
5. Do our vendors carry what they should?
A contractor without proper coverage can turn their problem into the association’s problem. Keep current certificates of insurance on file for the vendors who work on the property.
The point
None of these questions require an expert to ask. They require a board that decides to ask them early. If the answers are unclear, that is useful information, and it is much better to learn it in September than in a claims dispute.
This is general information, not legal or insurance advice for any particular association.
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