CAI-NJ June 2022 Community Trends

FAQS INSURANCE... from page 36.

a carrier, and the response is “we have seen this every year for the past five years,” It is never a good sign that they are going to offer a competitive quote. It is best to make sure that when you select your broker you find one that specializes in Community Association Insurance and has access to a wide range of carriers that can provide coverage to your commu nity. Then work together to discuss the renewal and bidding process with them, and what will be best for your community. We find it works well in most cases to completely remarket a community about every 3 years or so. When the insurance is not bid out every year it enables insurance carriers to realize the potential that your community is a viable opportunity for them and they are inclined to negotiate and offer more com petitive pricing and coverages to win your business. Longevity with an insurance carrier can also show loyalty on both sides and they can be more willing to keep your premiums lower to retain your community. There may be circumstances such as changes in your exposures or the insurance market that might warrant a remarketing as well. Working with your broker to determine what is best for your community will provide you with the best results for your community’s insurance needs. n

Q: Why don’t insurance brokers get three bids every year on my insurance coverage? A: Unlike the contractors you hire for the snow removal or landscaping there is no requirement for the board to bid out the insurance every year. The insurance brokers are profession als the board selects on their behalf to place the insurance pro gram they are required to carry to protect the community and the assets of the owners in the community. When the Board selects an insurance broker, they should place the same level of confidence in them as you have in your manager, attorney, accountant or other professional. Not all insurance policies are created equal or provide the same coverages. Your insurance professional should work with the board to help you select the best program for your community and discuss the timelines when bidding to other carriers is appropriate or required. If a community bids the insurance out every year the insur ance carriers start to realize that they are not really looking to move the coverage and will begin to decline to quote the insurance for the community. When we submit a property to

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