A condo association has certain responsibilities and obligations to the condo community. In addition to condo associations insurance, the organization can help mitigate risks with an effective risk management plan. These tips can help the association craft a plan that addresses its unique exposures.
The insurance firm Byrnes Agency Insurance states that sometimes it can be difficult for a condo association to determine what exactly their responsibility is. Spending time to assess the risks the condo faces can help determine the level of insurance coverage appropriate to include in the budget. This insurance can help cover those exposures against the losses associated with a lawsuit.
Beyond insurance policies, there are other ways that the association can control risks and minimize the financial burden. After assessing risks the association faces, the board can implement strategies that address those specific risks. Take time to evaluate the costs of controlling risk including insurance premiums before implementing the strategy.
Once you have a risk management strategy in place, it is a good idea to review the plan on an annual or incident basis. New risks or changing items may require alterations in the plan for it to be effective.
Condo associations insurance is one key piece of an effective risk management plan. Risks can change and your association should continually monitor and improve the plan.