Don’t Lose Your Insurance Coverage

Read full article on Noticias del cooperador.  

Rising insurance premiums and shrinking coverage are creating major challenges for co-op, condo, and HOA communities nationwide, but proactive maintenance and risk management are two of the best lines of defense according to AKAM’s Senior Vice President of Operations, Doug Weinstein.

“There are two main reasons carriers decline to renew or alter existing policies,” Weinstein explains. “Failure to maintain the property and excessive loss history.” 

While frequent claims can make insurers hesitant to renew coverage or may result in steep deductibles, Weinstein also notes that something as simple as deferring roof repairs or ignoring milestone report recommendations can trigger a cancellation.

The best way to ensure you keep your coverage is to maintain all building systems, ensure code compliance, and stay current on required certifications. “Work with your managing agent to maintain your building inside and out,” Weinstein emphasizes. “Make sure your building is always in top condition, that you’re adhering to current codes, and that detection systems are maintained. Alarms don’t do any good if they don’t work or are outdated.” 

Strong oversight and collaboration between boards and property managers can also work to your building’s benefit, as well as ensuring all vendors are properly insured to minimize exposure and protect against costly liabilities. As Weinstein explains, management’s role in risk prevention is crucial: “Carriers look closely at how well a property is managed. Staying organized and proactive can make the difference between keeping or losing your coverage.” 

Ultimately, communities should treat insurance protection as an extension of their maintenance program. Early planning, consistent upkeep, and transparent communication with insurance brokers and management teams can help properties avoid unexpected cancellations and stabilize costs over time.