This week's tip comes from a new article, HOA and Condo

Insurance: 5 Tips to Double-Check Your Association's Insurance

Coverage.

"Read carefully the [insurance] requirements of your own

governing documents," advises Robert Galvin, a partner at Davis,

Malm & D'Agostine PC in Boston who specializes in representing

condos and co-ops. "Occasionally, I find an association that

didn't follow the requirements of its own documents. For

example, one high-rise condo in a city near Boston didn't even

have a condo association policy. It had an apartment building

policy."

That said, it may be smart to consider easing your

association's insurance requirements. "Some associations have

coverage that's more expansive than the law requires, and that's

based on their governing documents," explains Matthew A. Drewes,

a partner at Thomsen & Nybeck PA in Edina, Minn., who represents

associations. "You might want to amend your documents to provide

for less inclusive coverage.

"For example, some have an all-in policy, which covers the cost

to replace everything inside a building. That could be converted

to bare-walls coverage, which covers only the cost of replacing

the structure to the bare walls. If you're being cost-conscious

in terms of premiums, that's a way you could save money. In

addition, if you require owners to carry HO6 policies, which are

policies specifically geared for condo owners, it makes sense to

reduce the association's coverage to bare walls."

To get all the condo and HOA insurance checkup tips, see our new

article.

Best regards,

Matt Humphrey

President