Part of managing insurance premium involves also managing claims procedures minimizing the chances of a similar claim occurring again.
- Determine the source of the claim and make necessary inspections to the building to uncover similar exposures that could cause the claim to reoccur. This might include inspecting or replacing water heaters and water lines to toilets, sinks, washer machines, and refrigerators.
- Pipes in foundations may begin leaking as buildings age. Consider re-routing pipes and abandoning water lines that may continue to break within the foundation or walls of the building.
Many CC&R’s require the association to insure the building as it was originally built, which makes the master insurance policy responsible for claims to the interior of the units. If this is the case with your CC&R’s, you might consider either amending your CC&R’s or creating a requirement for the unit owners to cover the deductible on the master policy. Most unit owner policies will pay the owners share of the master policy deductible. This may be an important tool for the association to manage future claims.