The Right Insurance Partner and Coverage
Now that you know your agent knows and you have aligned yourself with someone who understands the Condo Association and Homeowner Association insurance world, you are on track for success. If you are not sure if you agent knows, please read last month’s article. This partnership will allow you, the property manager, to move forward in your day-to-day responsibilities as a property manager.
But does it really end there? Are you really going to trust that agent’s knowledge and assume that what they are offering is the best for the property you manage and the board you represent? Yes, you will trust that agent, their knowledge, and their recommendations, to an extent. But you will also need to understand that all coverages are not equal. There are exclusions, caps or limits on certain coverages, and different types of coverages altogether.
I am not saying you need to understand all the different exclusions, caps or limits on certain coverages, and different types of coverages altogether. But I do encourage you to ask questions, understand what is being proposed and have that trusted agent really walk through what they are providing and why they are providing it.
One common shortfall within this area is also known as Code Upgrade or Ordinance and Law. Ask yourself, do you know what those mean? If not, this is one of those pieces of the insurance policy that you should have at least a little knowledge of. As someone who came from the restoration industry prior to insurance, this was one of the biggest issues or problem areas we encountered. Insufficient amounts on this coverage can be catastrophic and a financial disaster.
Do you know what would happen if the building you managed had a catastrophic fire? What happens if the City or Village determine that more than 50% of the value of the building is damage? Hopefully, these are questions that you do not currently have the answers to, because you have never faced a catastrophic fire at your property. Having said that though, this is something you should understand more about and what it all means. Understand it before facing that fire and learning the hard way.
These are all questions that you should have somewhat of an answer to or some general knowledge of to help you trust the explanation from your agent.
If you have questions about Code Upgrade or Ordinance and Law and would like to discuss further, the team at Crum-Halsted Chicago is always here to help.