HOAleader.com - Tip of the Week - October 22, 2010
Published: Mon, 10/11/10
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HOA Insurance Increases Getting You Down? 2 Tips To Help Cut
Costs
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In this week's tip, we aim to put a smile on your face by giving
you two ways to fight back against insurance rate increases:
1. Shop your policies.
"Shopping around is really important," says Elizabeth White, a
shareholder and head of the community associations practice at the
law firm of LeClairRyan in Williamsburg, Va. "Insurance has gotten
so darned complicated now, particularly when you have a condo or
large-scale association that has millions and millions of dollars
of infrastructure that have to be insured."
However, don't assume you'll save a ton of money by "forgetting"
to mention past claims as you jump from one insurance company to
another. "It can be dangerous to change companies now," says
White. "You can't be sure that just because you change companies,
you'll get better rates. For every claim you make, there's a file
on you in the ether world. When you apply for insurance now,
forms include lots of questions about past claims. If you're not
inclined to be honest, there are other ways companies can check
your claims history."
2. Double-check your insurer's estimate of appraised value for
your property.
Premiums are based in part on the value of your property. What if
the insurer's appraisal is based on incorrect information or has
changed because of the economy?
"A lot of policies are based on the insurance company appraisals,"
says Donna DiMaggio Berger, managing partner at Katzman Garfinkel
Rosenbaum in Ft. Lauderdale, Fla., who advises associations. "Year
after year they basically rely on that initial appraisal thinking
that if the building hasn't changed, why spend the money on another
appraiser? But what if the original appraisal was wrong--it says
you have five elevators and you've got two or it says you have four
laundry facilities and you've got one. We've even seen them off on
the number of floors! The single most important way to cut down on
your insurance is to get a copy of the appraisal the insurance
company is basing its premiums on and read through it."
To get 3 more tips, see our complete article,
http://www.hoaleader.com/members/496.cfm
Best regards,
Matt Humphrey
President
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Recent articles posted at HOAleader.com:
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Your HOA Can Hire Board Members; But Should You?
In last week's tip, we discussed the legal steps your board must
take before hiring a board member or his company to provide
services to your association. This week, we discuss whether it's
a good idea to hire board members--even if you follow the proper
legal procedures.
Click here to read full article:
< http://www.hoaleader.com/public/491.cfm >
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Beware Conflicts When You Hire Board Members' Companies--Part 2
When you recruit people to serve on your HOA board, experts
recommend that you look for people--like lawyers and insurance
brokers--with expertise that can help you make good decisions.
Click here to read full article:
< http://www.hoaleader.com/members/490.cfm >
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Can Your HOA Hire a Board Member?
In this week's tip, we discuss the legal steps your HOA board
must take before hiring a board member or his company to provide
services to your homeowners association.
Click here to read full article:
< http://www.hoaleader.com/public/492.cfm >
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Beware Conflicts When You Hire Board Members' Companies--Part 1
When you recruit people to serve on your HOA board, experts
recommend that you look for people--like lawyers and insurance
brokers--with expertise that can help you make good decisions.
Can you take that concept a step further and hire those board
members or their companies when your association needs help? Here
in Part 1, we discuss the hoops you must go through to hire board
members and their companies. In Part 2, we discuss whether those
hoops are worth the effort.
Click here to read full article:
< http://www.hoaleader.com/members/488.cfm >
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Discussion Forum Follow-Up: Shifting Common Elements to Owners
What if some of your homeowners association common elements
benefit only some residents? Can you amend your HOA's governing
documents to make the maintenance of those common elements the
responsibility of only those owners?
Click here to read full article:
< http://www.hoaleader.com/members/487.cfm >
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