Important Considerations in Purchasing Condo Association Insurance

Important Considerations in Purchasing Condo Association Insurance

July 29, 2020

Purchasing condominium association insurance is one of most important buying decisions a board will make for their association.   The decision must take into consideration requirements of governing documents, expense and coverages to protect their association.


It is important to start the bidding process early if at all possible- Ideally 60-90 days in advance of the renewal.  Put together a bid package including a description of your association including number of units and buildings, dates of improvements, year built and amenities.  In addition, the bid package should include copies of governing documents, map or site plan, 5 year loss history (must be provided by current agent) and copies of current policies.


Find an independent Kentucky condo association insurance agent who specializes in insuring community associations.    Insurance agents who have familiarity with all the unique exposures faced by associations and how to adequately insure these unique risks is critical to an association.


Request your agent prepare a side by side analysis of the association’s current insurance coverages and premiums compared to quotes received from other carriers.  This spreadsheet will be important to review thoroughly before making a decision as to which carrier is the best for your association.  The lowest price often indicates that there could be significant gaps in coverage.   A condominium association insurance checklist can be found under Condo Association Resources at or by calling our Shelbyville insurance agency.


Beware of quotes/policies that have a wind/hail deductible per building or a flat insurance deductible per building.  If your association has multiple buildings which sustain damage as a result of a covered claim, this could be a very large unanticipated amount out of pocket for the association.  Specifically ask your agent, what the association would incur in this situation.


Look for specialized policies to protect your community.  Separate from your package policy a specialized Directors and Officers liability insurance is vital to protect your Board of Directors.  Community Association Crime/Fidelity, Cyber, Umbrella and Workers Compensation insurance policies should all be discussed and considered for your association


Research the condo association insurance companies your agent presents to you.  Check the A.M. Best ratings to check financial ratings of carriers presented.  Choose a company with an A rating or better.  One reason that it is important to choose a financially strong carrier is to ensure it could potentially withstand multiple large scale catastrophic claim events. 

The most important thing to remember is that not all insurance agents or policies are created equal.  One size does not fit all for associations.   The reason why an association has insurance is to protect the community assets.  McDaniel Insurance Agency, an association insurance specialist,  understands the challenges and decisions of associations.  In addition to providing customized insurance packages for condominium and homeowner associations in Kentucky, our agency is licensed in Florida, Indiana, Ohio and Tennessee. 

Contact McDaniel Insurance, your community association insurance specialist, to provide your condominium or homeowner association with customized, comprehensive insurance coverage. Call 502.909.0920 or email