COOPERATOREVENTS NEW YORK EXPO. TUESDAY NOV 19TH . JAVITS CONVENTION CENTER. REGISTER NOW!

Common Insurance-Related Mistakes Boards Make ...and how to avoid them!

What are some commonly-made insurance mistakes boards should avoid?
Insurance may not be the most exciting topic facing boards in multifamily co-ops and condos, but decision-makers neglect it at their peril. Here, an insurance pro outlines some of the more common mistakes he sees boards make when it comes to their coverage, and gives advice on how to avoid them. 

Related Articles

Are You Covered?

Adequate Community Insurance Coverage

How Much is Enough?

Old-fashioned house and city view silhouette. Brick building covered by glass dom. Rent control house concept. Rent stabilized apartment unit. Well preserved and protected property. Flat vecto

Q&A: Mandatory Coverage

Q&A: Mandatory Coverage

Wooden business team with one person standing out from the crowd concept for leadership or individuality

D&O 101

Protecting Your Board

Flooded vintage interior. 3d concept

New Flood Provisions Must Be Incorporated into Proprietary Leases

Yes, the Law Applies to Co-ops

Businessmen balance himself on percentage signs. Central bank money policy for inflation or interest rate, balance between profit and loss, financial challenge or risk, economic recovery concept.

Rising Insurance Premiums

High Costs Force Tough Decisions for Boards

Insurance concept, Businessman holding red umbrella on falling rain with protect with icon business, health, financial, life, family, accident and logistics  insurance on city background

Loss, Insurance, & Claims

A Primer

 

2 Comments

  • The above advice is well-described and hugely important. A question: if unit owner insurance policies are supposed to be approved by a Co-op board, what assurances are there that the individual Board members have the necessary technical background in this area to assess each policy? As a practical matter, wouldn't unit owner insurance policy approvals be best delegated to the Management company?
  • My experience is that most managing agents in New York do not necessarily have the expertise to properly vet general liability or D&O policies. I believe the better practice is for condo and coop boards to have their general counsel, broker or someone else with insurance law experience review the policies. Most boards do not review their shareholder or unit owner policies but they should.