Insurance Renewals
The Importance of Planning Ahead
Insurance renewals are no longer a routine administrative task for condominium boards. In today’s market, carriers ask more questions, scrutinize building conditions, and often present higher premiums, larger deductibles, or tighter coverage terms. The best way to protect the association — and avoid rushed decisions — is to prepare well before the policy expires.
Boards should consider appointing an insurance committee to work closely with the association’s agent or broker. This group can gather information, review options, and help the board understand changes before renewal quotes arrive.
Key steps to take before renewal:
- Start the process at least 120 days before the renewal date.
- Gather current policies, loss runs, governing documents, reserve studies, recent financials, and vendor contracts.
- Update property details. Include building values, roof age, recent improvements, amenities, and major system upgrades.
- Address deferred maintenance and document completed repairs, inspections, and risk-control improvements.
- If the building has a sprinkler system, include the latest sprinkler inspection report. Sprinkler systems must be tested annually.
- Review deductibles, coverage limits, exclusions, and whether coverage still matches the bylaws.
- Discuss how renewal changes may affect unit owners’ HO6 policies, especially deductibles, unit coverage, and earthquake coverage.
- Once the renewal is active, communicate with owners so they have time to adjust their personal coverage.
A proactive renewal plan gives the board time to evaluate options, explain changes, and make informed decisions that support the association’s financial stability. When boards strategically plan ahead, they are better positioned to control costs, reduce surprises, and maintain appropriate protection for the association and owners.
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