What You Need to Know About HOA Insurance
Our team has over 30 + years of combined experience in protecting the Homeowners & Condominium association industry in South Florida.
There are so many types and kinds of associations that requires a team of dedicated professionals to be able to tailor the protection needed, each type of associations brings their risks and only an experienced professional can do, especially having someone on your side, negotiating contracts, since “insurance is negotiable”.
Experience Meets the New Age
The Bunker team is focused on innovation, strategy, and collaboration using an interactive platform to improve communications and coordination with key board members.
When the Bunker becomes part of your risk management team you get an unmatched wealth of experience and knowledge. Luis R Gravier has been protecting this industry for the last 20 years, he is not only a risk advisor on the insurance side he also brings over 10 years as an association board member making him a qualified advisor; he is knowledgeable when it comes to bylaws, budgets, inspections, building certification requirements and frivolous lawsuits.
HOA Frequently Asked Questions
The main responsibility of board members is to make tough decisions most of the time, and their decisions have a tremendous impact on tenants and others.
Board members are often sued along with the association itself or separately because of actions they have taken or fail in their capacity as board members.
While carrying tasks appointed to a board member there is a possibility of getting injured. These injuries in most cases are minor but there is always a possibility of one of those injuries becoming a large expense to the association.
The second reason is that many of the services providers like landscapers, roofers, electricians, painters, etc. will provide the association with a certificate of insurance months ago, and now because of lack of payment, the coverage has lapsed.
In case of any service providers or their employees suffer from an injury while performing the under contracted services they can turn around and suit the association for medical expenses. The workers' comp policy provides peace of mind in case of a service provider has been uninsured most likely the policy will respond.
Florida Statutes FS718.111 (11) a. requires all residential condominium buildings to have an up-to-date appraisal for replacement cost valuation that can be used to obtain the correct property insurance policy.
As a board of an association exercising your fiduciary responsibility to the tenants is your responsibility to comply with this law ($5,000 fine) and if the building is 30 or 40 years old, please include an inspection on the building and ever overlook the repairs or alterations that are reflected on the inspection report.
Many board members are under the pretense that by using a property management company they are relieved of responsibility in case the owner’s information is compromised. Even though there is some truth to that assumption, the association will be responsible to comply with the Florida Statute to actions that the association is responsible for, like notifying the residents of the breach.
There are specific Cyber liability policies designed for condo associations that can provide needed coverage. We can help you budget for this coverage gap.
If you are using a management company please make sure that you are getting a certificate of insurance adding the association as a “named additional insured “.
Other Things to Consider When Insuring your HOA
There are many types of associations, residential, office condominiums, at the Bunker Insurance & Risk Management we are familiarized with all the coverages needed:
- Assault & Battery
- Bonds
- Crime
- Cyber
- Director & Officers
- Excess Liability
- Glass Insurance
- Flood
- General Liability
- Hired & Non-Owned
- Legal Defense Insurance
- Property Insurance
- Workers Comp
- Ordinance or Law
- Equipment Breakdown
Your association should only work with a firm that is dedicated to ensuring associations, giving this team of professionals a vast experience on specific coverage, policy changes, and the important exclusions on a policy. Living in South Florida makes us vulnerable to tornados, tropical storms, and hurricanes every year which understanding wind deductibles is highly required since it can have a catastrophic economic impact on the association's financial status.
The Bunker will always be here to help an HOA or Condominium Board Association to act in compliance with your fiduciary responsibility. Our firm would never write a policy without an appraisal or inspections that are required due to the age of the building.
Many association boards believe in shopping around at renewal time, believing that the main concern tenants have in their minds is price. Wait until your association has an uncovered claim by selecting the wrong firm to ensure your association's unique exposures. Spend time interviewing different agencies, their experience, and added value prepositions, and then select the best to fit your association's needs and concerns.
We are convinced that Bunker Insurance & Risk Management is the right fit for your association: experience, knowledge, and customer experience; you will be glad that you made the “move from danger to a safe place”.
