Happy New Year! As usual, the first Coverage Corner of the year is about resolutions for the upcoming year. We have some new ones for 2023!

RESOLUTION #1 Plan ahead – WAY ahead!
It used to be that everyone would wait until their insurance renewal proposal showed up, and then decide if they wanted to go out to bid. With the current hard insurance market, that approach will no longer work in your favor. Many insurance carriers are not releasing renewal proposals until just weeks before the renewal date and obtaining competitive proposals takes weeks or months instead of days. This has insurance agents, community managers and board members pulling their collective hair out! If you would like to compare proposals, it is best to start asking for them at least 90 days before your renewal date. For our potential clients, we are checking in around that time to see if we can start working on proposals for you.

RESOLUTION #2 Check your Infrastructure
If your community is aging, it may be time to take a look at what infrastructure components may need to be inspected or even replaced. Recently, a hard line has been drawn when it comes to electrical panels, and insurance coverage for buildings with Zinsco, Stab-Lok or Federal Pacific panels can only be found in the surplus lines markets at dramatically higher premiums. Communities with any major losses due to failing water or sewer lines are being forced to re-pipe or move to surplus lines markets If your community is older, you may want to take a close look at what potential issues may be lurking and begin to plan for replacements.

RESOLUTION #3 Be Prepared
If the board of directors for your community has been proactive with any safety programs let your agent know! Communities that are prepared for any emergency are a more desirable risk for carriers to take on. Sharing information such as evacuation plans, updates or certifications for alarms or fire sprinklers, safety programs for residents, etc. helps your agent paint a picture of your community to the underwriters who determine your premium. Pretty pictures = better premiums!

RESOLUTION #4 Get Educated
The CID industry is constantly evolving and there are many opportunities for both community managers and homeowner leaders (board members) to keep up with trends and changes. Community Associations Institute (CAI) and the California Association of Community Managers (CACM) are two organizations that provide educational opportunities, both in person and virtual. Schedules for educational opportunities can be found on your local CAI Chapter website or at the CACM website.

As we roll into this new year, we also want to say how much we appreciate the feedback and suggestions for our little newsletter. We look forward to a wonderful 2023!

Terri Guest is the Senior Sales & Marketing Representative for Northern California for Berg Insurance Agency and may be reached at Terri@berginsurance.com.