Where can our HOA find the best master-policy insurance?

If your HOA's insurance premium has jumped, the best next step is to compare available master-policy options using the same association information and a clear view of what each proposal covers. The best policy for your board is one that fits the buildings, the association's responsibilities and the amount of loss the association can afford to retain.

BIG can help your board review the renewal and available alternatives. Send the current policy, renewal proposal and renewal date to start the conversation. You do not need to know every insurance term before asking for help.

Request an HOA master-policy review or call (612) 712-6407.

Start with what changed in the renewal

A higher total premium does not tell the board which part of the proposal changed. Ask for an explanation of the building values, rates, deductibles and terms compared with the expiring policy. If a building limit increased, find out why. If the roof coverage or wind and hail deductible changed, understand the financial effect before considering the renewal comparable to last year's policy.

This gives the board a useful starting point for shopping. “Can you find a lower price?” is a reasonable question, but the comparison also needs to show whether a lower premium comes with a larger deductible or a coverage restriction the association is not prepared to accept.

Compare proposals your board can explain to owners

Ask the agent to put the important differences in writing, using the same building and association facts for each proposal. The comparison should address:

• The buildings and common property included, and the association's responsibility under its governing documents.
• Building limits and how losses are valued, including any roof limitations.
• Wind, hail and other deductibles, including whether a percentage applies by building or another basis.
• Significant exclusions, special conditions and any required inspections or repairs.
• Liability and other association coverages included or quoted separately.
• Total premium, payment terms and the effective date.

For a percentage deductible, ask for the dollar amount for your association under the proposal's actual wording. A percentage shown on the proposal is difficult to evaluate without knowing the value and basis to which it applies.

Do not choose a policy by price or an insurer's name alone. The board needs enough information to explain the decision and understand what the association would pay after a loss.

What to send when asking for HOA insurance quotes

Start with the current declarations, renewal proposal and expiration date. Include the number and addresses of the buildings, available construction and roof information, major updates, amenities and relevant governing documents.

Loss runs are part of the quoting file, not the reason most boards start shopping. If you do not have them, tell us what is missing so we can explain what records to request. Also describe open claims and completed repairs accurately. An open claim does not mean the association should wait until the renewal deadline to discuss its options.

For Minnesota associations, our lower-cost HOA insurance guide explains more about reviewing a premium increase.

When a property manager should consider a new agent

A property manager may already have an established insurance relationship. A useful reason to seek another review is that the current process has stopped working: renewal information arrives too late, important questions remain unanswered or the board cannot get a clear comparison.

Taking on a new association is another reasonable time to evaluate an agent. The manager needs to understand that property's insurance arrangements and may want to see how another agency handles the submission and renewal discussion before expanding the relationship.

A second opinion does not require a promise to move every managed property. Start with the specific association, the problem to resolve and the decision date. See getting an HOA insurance second opinion for more on that conversation.

How BIG helps your board make the decision

We review the association's information, discuss available options and help explain the differences between proposals. Our goal is to make the choice understandable: what you are paying, what is covered, what the association retains and what needs to happen before coverage begins.

A lower premium is possible in some situations, but it is not guaranteed. Availability and terms depend on the property, underwriting and market conditions. Obtain confirmation that replacement coverage is bound before treating the switch as complete.

Send BIG your HOA renewal for review. Include the expiration date and tell us whether your main concern is the increase, the proposed terms or the service your board is receiving.