Insurance agents have a broad range of specialties. As an HOA board member, you want to be sure your insurance provider’s area of expertise is in association insurance.
Because each homeowners association has unique needs and exposures, an agent specializing in HOA insurance is qualified to:
- Review the HOA’s governing documents,
- Recommend the legal minimum insurance requirement and additional appropriate coverage,
- Educate the board on coverage, limitations, and exclusions; and
- Clarify for the board how claims and deductibles will be processed.
In addition to these important tasks, an HOA insurance agent will obtain premium quotations to help the board decide which program best fits their community’s needs.
A qualified HOA insurance agent’s job is to review the association’s annual claims and recommend how to reduce future claims. They may also inspect the community to identify any exposure that needs to be addressed, while verifying property values for replacement costs.
Independent vs. Captive Agents
Independent agents do not work for a specific insurance company. They are able to recommend any insurance policy that is a good fit for the association, regardless of the insurer. This often allows them to provide better rates and more customized coverage.
Captive agents are typically only able to offer policies underwritten by the insurer they work with.
Because insurance is often one of the biggest expenses for your HOA, you’ll want to be sure you are making the best choice that fully protects your community. Your HOA insurance agent should offer comprehensive coverage choices, policy customizations, certificates of insurance, and other pertinent information.
When the board works together with their insurance agent, they can educate residents about the HOA’s policy. This will enable the board to clear up any confusion that owners may have about where the HOA policy stops and their responsibilities begin.