Preparation is the Key to Success for Community Associations and Business Owners

There Is No Substitute For Understanding Your Insurance

Not many owners and managers want to spend their evenings or weekends poring over the fine print in their insurance policies. It’s certainly not easy to understand specialized terminology, as well as the complex way policies are written. It might seem like you are well protected in a paragraph on page 5 of your policy, only to find there are major coverage exclusions on page 55.  This complexity works to the benefit of the carriers but to the detriment of owners and managers.

Nevertheless, there is no substitute for understanding your insurance.  You may be willing to accept some risks in return for a lower premium, but that’s a decision for you to make—not one that the carrier attempts to hide behind a slew of words and confusing provisions.

Secondly, take steps to document the condition of your property with photos, videos, purchase orders, invoices and payments to service providers and contractors. This is especially important if there was recent construction work on one or more of the buildings prior to the loss. Being able to show photos of a repaired roof prior to a loss from storm or fire is helpful to recovery if the carrier decides to dispute your claim.

In summary, preparation is the key to any success in dealing with an insurance claim. It means having the on-site management team maintain thorough documentation of the condition of your assets and update that documentation on a regular basis. Those two steps will go a long way to managing the claims process and provide a solid foundation for an equitable recovery following a disaster.

Share it: