Repairs and updates to your community association facilities change the insurance needs for that association. Some improvements can save you premium dollars, while others might increase your need for liability or replacement.
Expanding your Board? Check your Directors and Officers Coverage – D&O insurance protects those community association volunteer leaders who serve as trustees or board members. If your community is growing, and you add new members, your coverage needs may change.
Updates and Upgrades to Existing Features Can Affect Premiums/Coverage Needs – Updating your community pool? Renovating the clubhouse? Changes to the structures can both increase the need of coverage and even lower premiums. As it is with homeowner’s or unit owner’s insurance, increasing the value of the property may increase the coverage needed. The good news is improvements that reduce the risk of damage, such as a new roof or updated wiring, may yield premium discounts. A community association should have a thorough review of the changes in the community with their insurance agent.
Liability Changes – A community is liable for events on the property. Any community association ought to have an umbrella policy that will cover the community should someone be injured or worse.
Adding features, such as a playground, walking paths, or even a fountain will likely change how much liability coverage you will need. As with property improvements, adding security lights or improving roads and sidewalks may lead to premium discounts.
Tell Your Agent – Community associations should stay in close contact with their insurance agent. That agent should be made aware of changes in your association that could affect how your community is covered. A detailed account of improvements and changes will go a long way to making sure your community has the proper coverage at the best value.
If you would like to explore your coverage – identifying gaps and potential cost savings – contact the independent agents of the O’Connor Insurance Agency. You can reach us at 314-434-0038.