1. Are our building values up to date?
Ask when the association last completed a replacement-cost appraisal. Current values help ensure the property limit reflects rebuilding costs and support realistic budgeting.
2. How financially strong are our insurance carriers?
Ask about each carrier’s financial strength rating and the financial backing behind its coverage. Your insurance advisor can explain what the ratings mean and help the board understand the security of the companies insuring the association.
3. What are our deductibles and sublimits, and how do they compare with industry standards?
Review the amounts the association would retain for different types of losses, along with any sublimits that cap coverage. Ask your advisor to explain how these terms compare with what is commonly available for similar Miami condo associations.
4. What would our out-of-pocket costs be, and what triggers coverage after an event?
Ask how deductibles, exclusions, and coverage terms could affect the association’s costs after a loss. Make sure the board understands what must happen for a covered claim to be triggered and what steps are required to report it.
5. How soon can we begin the renewal process, and when can we expect best and final numbers?
Ask your insurance advisor for a clear timeline, including when the market process should begin and when the board can expect final proposals. Knowing the schedule helps the board plan its budget, compare options, and maintain the strongest negotiating position.
About the author
Juan Cordoba is SVP and Managing Director of the Florida Real Estate Group at Alliant and serves as BHA’s Insurance & Finance Chair.
This article is provided for general educational purposes and does not constitute legal or insurance advice.
