What Risks do Condo Associations Face?

condo associations

A leadership position in condominium associations can be hectic. Maintaining member harmony and attending to business matters make it challenging to carve out time for a risk management program. While condo association insurance is the backbone of that strategy, steady risk-reduction steps make an enormous contribution. On the road to forming an action plan for your association, it’s helpful to look at some common flashpoints in condo communities and their risk mitigation steps.

Insuring for Property Damage

A homeowners association typically insures common areas, with members assuming responsibility for their dwellings. In a community of single-story houses, this distinction is straightforward. In a multi-unit structure, drawing this line is more complicated. The goal for your association is to assure that no property damage can fall between the cracks of your master policy and the coverage obtained by your members. An annual review of the governing document by your legal counsel is a prudent step. Follow this step with clear communication to your members on where the association’s coverage ends and where the unit owners’ insurance responsibilities begin. These steps, though tedious, can head off corrosive misunderstandings and expensive litigation.

Reducing Playground Risks

Playgrounds add zest to an association and serve as selling a point for new members. Unfortunately, the risk of injury to your community’s littlest residents is always present. Play area risk-reduction steps include:

  • Insurance:Consult your agent before installing upgrades.
  • Maintenance:Create a weekly checklist and maintain records. Immediately tape off suspect equipment pending repair.
  • Adult supervision:Aim to have every child supervised by an adult family member.
  • Weather:Limit playground access on Florida’s high heat stress days.

Heading Off Cybercrime

A condo association holds sensitive member information, and this data makes your community an inviting target for cyber crooks. Along with cybersecurity coverage in your insurance bundle, you can take these proactive steps:

  • Restrict BYOD Access: Accessing databases with a personal computer or smartphone – a policy known as bring your own device – exploded with the 2020 COVID-19 response. Nonetheless, consider limiting access to your association’s sensitive info to the office. Though inconvenient for the community’s leadership team, this approach closes off multiple attack vectors from unhardened BYOD devices.
  • Ban Wireless Access of Member Data: Along with office-only access for member information, this step deters drive-by cyber predators from snooping on your network.
  • Remove Former Member Information: If a cyber crook victimizes a former member with information stolen from your records, your association is still liable for damages. Purge this data the day your member moves out.

Risk management strategies for condo associations, when carefully implanted, yield much more than lower insurance premiums. When management, boards, and association members join hands in the effort, the result is a safer and more harmonious community.

About The Hilb Group

Deciding what coverage you need and what limits and deductibles make the most sense can be tricky. Founded in 2009, the Hilb Group has been helping clients to make sense of their options and make the smartest choices for their circumstances. Whether you need Warehouse Insurance or any other type of business or personal coverage, we encourage you to contact our friendly, experienced, and capable team today. Call us at (800) 776-3078 for a consultation.