Each association is unique and all are challenged to identify what type of insurance it needs and how much insurance to purchase. This can be a very confusing topic because different insurance carriers use different terms to describe their insurance offerings.
In this section, we will try to help you identify what insurance you need, and considering insurance is about mitigating risk, we will try to help you identify what insurance you need and to what extent.
Most often, it is not just about how much risk your association is willing to take, though how it impacts potential buyers acquiring a loan to purchase a unit within your community. In other words, banks and mortgage companies want to see certain types of insurance coverage.
There are several types of insurance that we all may be somewhat familiar with, though do we really understand what each type of policy provides?
We have been able to identify there are five basic types of insurance.