If you’re a member of your HOA Board, you already know that it takes a lot of hard work and staying on top of things to keep the association running smoothly. It’s scary when you think about the disasters that could undo all your hard work in the blink of an eye. In today’s business environment, many insurance companies have discontinued or changed coverage while raising premiums. That’s why it’s necessary to make sure your HOA insurance coverage is all that it should be before you need it. This year, dare to compare your insurance costs and coverage.

There are a few “musts” when you dare to compare insurance coverage.

  • An agent who is familiar with HOA industry can help guide your Board in making a decision. The agent will know about common mistakes and association claims. Stick with a knowledgeable agent when you compare.
  • Know the risk of your decision(s). It can make sense to raise you deductible to $2500 if you have that amount on hand. If your association can’t afford to pay a larger deductible without a hardship, don’t put yourself at risk. Risking more than you can afford is a poor business practice that could be detrimental to your community.
  • Make sure that you weigh pros and cons before you terminate specific insurance coverage to save money. You may have to take on a few more risks to lower insurance, but make sure that your Board has determine it is a calculated risk that you’re willing to assume.

Homeowner association insurance is intended to cover the common elements in the community as well as liability claims. HOAs need the insurance, but it’s a competitive industry. As insurance premiums have escalated in recent years, you owe it to your HOA to shop around. Don’t be afraid to ask for alternative options with your current carrier. Many times, your current agent will help you find ways to reduce the premium to keep your business.

Richard Thompson from Realty Times talks about directing claims to members’ insurance in a recent blog. If you are insuring areas that homeowners’ insurance typically covers, this is a potential area to reduce insurance coverage.

Your deductible may be costing you more than you think. Years ago, everyone went with the lowest possible deductible and many of us have stayed the course without realizing that a higher deductible could save us a lot of money. Make an educated decision on what’s best for your community by comparing different coverages, premiums, and deductibles. If your HOA can afford it, a higher deductible may save you money.


Wise Property Solutions is a property management company serving East Tennessee with offices in Knoxville, TN and the Tri-Cities, TN-VA. Specializing in Condominium Association Management, Home Owners Association Management, HOA Management and Gated Community Association Management.


Tri-Cities, TN-VA: 423-926-7373

Knoxville, TN: 865-643-8989

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