Exploring Options for Our Condo Master Policy
As a member of the Board of Trustees for a small self-managed condominium community, I wanted to share our current situation regarding our insurance. We have always valued our relationship with our local insurance agent, who assisted us in crafting our existing policy. However, we’ve recently experienced a significant rate increase and have been informed that next year’s rates could rise even further, despite having no claims on our record.
To ensure we’re securing the best possible value, our Board has decided to reach out to another local agency for comparative pricing. We are also in discussions with our current agent to explore options for lowering our rates or at least preventing another substantial increase.
However, some former trustees have expressed strong objections to this course of action. They’ve labeled the idea of sharing our current policy with another agency as “highly unethical” and argued we lack a valid reason for seeking alternative quotes. They also seem concerned that our current agency might retaliate against us for considering other options.
My main question is: is there any validity to the concerns raised by these former trustees, or are they simply overreacting? I would especially appreciate insights from insurance professionals on this matter. Thank you!
It sounds like you’re navigating a complex situation with your condo community’s insurance policy. Here are some thoughts to consider:
Shopping for Competitive Quotes: It is standard practice for organizations, including condo associations, to seek multiple quotes when purchasing insurance. Doing so allows you to ensure that you’re receiving competitive pricing and comprehensive coverage. This is a responsible approach, especially given the significant rate increase you are facing.
Ethics of Sharing Information: Sharing your current policy with another agency to obtain comparative quotes may raise concerns about confidentiality, but it is generally considered acceptable as long as you are transparent about your intentions. You can emphasize that gathering quotes is part of your fiduciary duty to make informed financial decisions for the community.
Concerns of Retaliation: While it’s natural for some to worry about potential retaliation from your current agent, reputable insurance professionals understand that clients explore their options and should not retaliate against you. If they do, it would reflect poorly on their business ethics.
Communicating with Current Agent: Before moving forward with another agency, it might be helpful to have an open conversation with your current agent. Share your concerns about the rate increase and see if they can provide alternative options or explanations. This could strengthen your relationship and lead to better terms.
Consulting with the Board: Make sure that the entire Board of Trustees is aligned on this strategy. Having a unified approach can help mitigate any backlash from former trustees and reassure the community that you are acting in their best interest.
It sounds like you are taking the proper steps to advocate for the best financial interests of your community. Balancing the conversation with the former trustees while pursuing competitive rates will require careful navigation, but it’s important to prioritize the long-term sustainability of your condo’s finances. Good luck!