You know how it goes. January 1st, everyone is gung-ho with their resolutions for the New Year. Losing weight, saving money, and exercising more are on the top ten list for most common resolutions. But what about for your communities? Do you have New Year’s Resolutions for them?

With regard to insurance, there are a few things you can resolve to do this year for your communities:
1. Take inventory. Yes, the reserve study has a list of the major components for your association. But what about the little things? Does your clubhouse have pictures on the walls? How about pots, pans and dishes in the kitchen? Most of these items would not be mentioned in the reserve study. However, if there was a fire and the clubhouse burned down, would you want them replaced? The easiest way to accomplish this task is to take pictures to document what is there. Bring a camera, or use your phone, to take pictures before the next board meeting and then save those photos in the insurance file for the association. (While you are at it, do it for your own home as well!) Once you have the photos, assign values to these items and compare the total to your “contents” coverage under your building policy to be sure you have enough.

2. Have a policy for who pays the deductible. Not only is this in the best interest of the association, it actually helps the homeowners. If there is a clear policy in place, most HO-6 policies will provide coverage if the individual homeowner is found to be responsible for the deductible on the HOA’s master policy.

3. Collect “additional insured” endorsements. Yes, you have certificates of insurance from all of your community’s vendors, but do you have copies of the actual endorsement that names the association? That is the document that proves the carrier has been notified and the community really is named as an additional insured under the vendor’s policy. Certificates of insurance are great, but the endorsement is really what you need to assure coverage.

Do you need help with any of these resolutions? Give me a call!
Terri Guest, CIRMS is the Northern California Sales & Marketing Representative for Berg Insurance Agency and can be reached at Terri@berginsurance.com. Have an insurance question? Ask Terri and your question may be the subject of next month’s edition of Coverage Corner! If your question is picked, you will win a Starbucks gift card!