COMMON INTEREST COMMUNITY STANDARDS COUNCIL
Quick Reference QR-S4 — The Annual Insurance Renewal Checklist
Series: Board Member Essentials
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THE FOUR EXPOSURES -- WHAT YOU'RE INSURING AGAINST
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  PROPERTY
  What can go wrong: Fire, storm, equipment loss, building damage
  Primary coverage:  Property insurance

  LIABILITY
  What can go wrong: Visitor injured on property; wrongful enforcement
  Primary coverage:  CGL, D&O, Umbrella

  INCOME
  What can go wrong: Rental income lost during covered repairs
  Primary coverage:  Business interruption, extra expense

  PERSONNEL
  What can go wrong: Employee injury, employment claim, theft
  Primary coverage:  Workers' comp, EPLI, Fidelity


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FOUR SOURCES OF COVERAGE REQUIREMENTS
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Required coverage = the MAXIMUM across all four sources.

  1. State statute (Texas Property Code Section 82.111 for HOAs;
     Section 82.113 for condos)
  2. Your Declaration's Insurance article
  3. Lender / agency requirements (Fannie Mae Section B7-3 if any
     unit is financed)
  4. Vendor contracts (vendors requiring association as additional
     insured)


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ANNUAL RENEWAL MEETING AGENDA
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Walk this with your broker every year -- same agenda, every year.

  [ ] Walk the declarations page -- confirm insureds and addresses
      are correct
  [ ] Confirm property Statement of Values reflects current
      replacement cost (not market value)
  [ ] Check coinsurance compliance -- confirm insured amount divided
      by required amount is greater than or equal to coinsurance %
  [ ] Confirm CGL limits (minimum $1M/$2M) plus umbrella ($5M-$10M+
      for most associations)
  [ ] Confirm D&O continuity -- same retroactive date, same limit,
      insured-vs-insured carve-back intact
  [ ] Confirm fidelity coverage meets agency requirements (operating
      cash + 3 months reserves -- Fannie Mae standard)
  [ ] Confirm flood, earthquake, and cyber coverage where exposure
      exists
  [ ] Review loss history and any open claims
  [ ] Document this meeting in the board minutes


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FOUR QUESTIONS TO ASK THE BROKER EVERY YEAR
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  1. "Which carriers did you market this to? Which declined and why?"

  2. "What changed from last year -- coverage, exclusions,
     deductibles?"

  3. "Are there any gaps -- known exposures we're currently not
     insuring?"

  4. "What is the A.M. Best rating of every carrier you're
     recommending?"
     (Should be A- or better)


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D&O INSURANCE -- WHAT'S DIFFERENT
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D&O is claims-made -- coverage applies to claims first made AND
reported during the policy period.

Key risks:
  - Policy lapse = no coverage for prior unreported acts
  - Carrier change = confirm new policy's retroactive date covers
    your entire service
  - Insured-vs-insured exclusion = confirm there's a derivative-suit
    carve-back


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WHEN SOMETHING GOES WRONG -- THE FIVE-STEP DRILL
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  1. Notify the broker the same day -- late notice can void coverage
  2. Document everything -- photos, estimates, witnesses, reports
  3. Mitigate further damage -- board windows, shut off water, remove
     equipment
  4. Cooperate with the adjuster -- submit Proof of Loss within the
     policy window (typically 60-90 days)
  5. Preserve subrogation -- do not release any third party's
     liability without carrier's written consent

First call = broker, not the carrier directly.


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SAVE THIS CONTACT INFORMATION
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  Association Insurance Broker:  _________________________________
  Broker Direct Line:            _________________________________
  Broker Email:                  _________________________________
  D&O Policy Number:             _________________________________
  D&O Carrier:                   _________________________________


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This card is an educational summary. It does not constitute insurance
advice.

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