As a board member of a Washington State condominium and homeowner association (COA – HOA ), you’re likely facing a challenging insurance market. The state’s unique geographical features, combined with the increasing frequency and severity of natural disasters, have contributed to a hardening insurance market. This means higher premiums, reduced coverage options, and potential non-renewals.
Washington State’s Condominium and Homeowner association are being hit hard during insurance renewals due to hurricanes, floods, wildfire, and landslides that are actually happening in other parts of the country. It really not fair but due to the insurance companies overall exposure they raise rates to ensure they are profitable. Consequently, they’ve implemented stricter underwriting guidelines and increased premiums to compensate for the increased losses.
Risk Mitigation and Prevention:
Regular inspections: Conduct routine inspections of common areas and individual units to identify potential hazards. Many association claims are being denied due to lack of maintenance. If you do have a claim make sure that the adjuster knows about your regular inspections.
Disaster preparedness plans: Develop and implement comprehensive disaster preparedness plans, including sheltering in place and taking care of members who need assistance.
Maintenance and upkeep: Ensure that all building systems and components are well-maintained to minimize the risk of damage.
When to make a claim: As a board determine when you should make a claim. This should work hand in hand with your deductible. Some boards agree to have a higher deductible and have that amount held in reserves.
Insurance Policy Review and Negotiation:
Annual review: Review your insurance policies annually to ensure they adequately cover your association’s needs.
Negotiate terms: Work with your insurance broker to negotiate favorable terms and conditions, including deductibles, coverage limits, and exclusions.
Explore bundling options: Consider bundling multiple insurance policies, such as property, liability, and workers’ compensation, to potentially receive discounts.
Alternative Insurance Solutions:
Captive insurance companies: Explore the possibility of forming a captive insurance company to self-fund a portion of your insurance risks.
Loss prevention programs: Ask about discount for participating in a loss prevention program. Many carries will offer discounts if the association to demonstrate your commitment to risk mitigation.
Community Engagement:
Educate residents: Educate residents about insurance-related issues and encourage them to take steps to protect their individual units.
Encourage participation: Foster a sense of community involvement and encourage residents to participate in risk mitigation efforts.
Disclaimer – we are not insurance agents nor do we actively participate with association seeking insurance. We always recommend using experts in a given field to give association help
