Condo Association Insurance

[Avalon]

What is the name of your state? NJ

I am in a new-construction 6-unit condo building in a resort town. The Board consists of six members, which means each unit has a representative on the Board. The Association has just been turned over from the builder, and we are in the midst of figuring out what insurance coverage we should have. Other than property, liability and flood, it has been recommended by our agent that we purchase Directors' and Officers' liability coverage, as well as Employee Crime and Dishonesty. Are these really necessary for such a small Association, or just extra commission for the agent? Any advice would be appreciated. Thank you.

 

[You Are Guilty]

They are real, and quite recommended for all Boards, even small ones. (Come to think of it, out of the dozens and dozens of various Boards I've dealt with in the past, not one didn't have D&O insurance.) No one thinks insurance is necessary... until something happens and they need to file a claim. Suddenly, the same people wish they had more coverage!

You can always try negotiating your broker's fees if that's the biggest issue.

 

[HomeGuru]

I agree, especially the D&Oi nsurance.