Not all master insurance policies offered to condominium associations are the same. Some insurance companies are offering the standard BusinessOwner Policy and others have developed their own policies specifically designed for condominiums. Evaluate coverage and not just price before you make your buying decisions.

There are many insurance companies competing for your business. You may find that you can negotiate a better policy for your association. This could mean much more than a price reduction if you have a claim.

Your first step should be to compare building limits, liability limits, and sub-limits for items like flood and earthquake. Compare deductibles since they also vary significantly. Some insurance companies offer one basic deductible and other companies add additional deductibles for water damage, windstorm, flood and earthquake. If you are located near the coast you may find a percentage deductible. Beware, percentage deductibles are a percentage of the building limit and not the claim.

Your second step should be to consider the actual policy form. Does it cover sewer back-up, is there broad form water coverage, what coverage do you have for natural property like landscaping and additional structures like retaining walls?

Third, and not to be overlooked, is to determine how your policy will pay for unit owner improvements. Is the master policy all-in or bare walls?

There are some intangibles to consider when selecting an insurance company

Is your insurance company committed to the market? Some companies enter and leave and it's disruptive. How well does your insurance company pay claims. What is the Insurance Company's financial rating?

We recommend working with an insurance agent that understands condominium insurance and can design your policy according to your needs.