Subject: Determining the Best HOA Insurance Options
Hello everyone,
We’re in the process of renewing our HOA’s insurance policy and have some questions about ensuring we’re getting the best options from our broker.
Our current policy’s premium is five times higher than what we paid in previous years, and the renewal quote from our current broker is four times what we were paying before. We’ve reached out to two other brokers for comparisons, but unfortunately, they indicated that our current broker has secured all available markets, preventing them from providing alternative quotes.
We’re considering providing the book of record to another broker for their quotes. However, we’re unsure if doing so would impact the quotes we currently have from our existing broker. It’s worth noting that our current broker doesn’t possess the book of record for our HOA, but one of the new brokers we’ve approached has requested it in order to generate quotes.
Additionally, our HOA has experienced water damage claims in the past three years, and we’re located on the edge of a fire zone, although we were fortunate to escape damage from the recent fires in LA.
Any advice or insights would be greatly appreciated. Thank you!
It sounds like you’re in a challenging situation with your HOA’s insurance renewal. Here are some steps and considerations to help you navigate this process and ensure you’re getting the best coverage options:
Assess Current Broker’s Options: To determine if your current broker is providing the best options, start by asking them for a detailed explanation of the premium increase. Request a breakdown of the coverage limits, exclusions, and how claims history is impacting your rates. Compare this information with the available market rates for similar coverage.
Shop Around: Since two other brokers mentioned that your current broker has locked up the markets, it may indicate that they have exclusive agreements or that your claims history is making it challenging to get competitive quotes. However, don’t hesitate to reach out to additional brokers who may have other resources or insights.
Book of Records: Providing the book of record to a new broker can be beneficial for obtaining accurate quotes. However, clarify with your current broker whether doing so would void your current quotes. In most cases, sharing this information with a new broker should not void existing quotes unless there are contractual obligations in place stating otherwise.
Nature of Claims: Having past water damage claims and being located in a fire zone are significant factors influencing your insurance rates. When obtaining quotes, detail these claims to other brokers; some may have access to different markets that offer better terms for HOAs with similar histories.
Transparency and Communication: Ensure you communicate openly with all of the brokers you’re dealing with. Share your concerns about the premium increases and your goals for securing the best possible coverage at a reasonable price.
Consult an Expert: If you’re feeling overwhelmed, consider consulting an insurance expert or risk manager who specializes in HOAs. They may provide valuable insights and help structure your coverage needs effectively.
Negotiation: After collecting potential quotes, use the information to negotiate with your current broker. They may provide better terms if they see that you are actively shopping around and have competitive offers.
In summary, gather as much information as you can from multiple sources, be transparent, and don’t hesitate to leverage the insights from brokers to get a better deal. Good luck with your renewal process!