Understanding Your Insurance Policy's Fine-Print What You Need to Know about Riders

When it comes to insurance coverage, it’s what you know about your policy that matters. Not understanding your policy’s limits could be tantamount to not having the right insurance, and in a hurricane-prone area like Florida, that could spell disaster.

While most unit owners and board members have a good grasp of the major insurance coverages they are paying for to protect their building and property (such as homeowners, liability and umbrella) other, more specialized types of insurance also are important to know about. Some of these coverages could be valuable, or even essential, for board members to understand. As board members, they have an obligation to be the fiduciary watchdogs of the community.

Asset Protection

The devil could be in the details of your building or association’s insurance policy, but you won’t know it if you don’t know the actual details of the policy. In times of crisis, understanding that policy could be as valuable to the unit owners as knowing the community’s governing documents. That is why now is the time to act and buy more insurance if you need it. When the rains are on the weather map and targeting your community, it’s too late to get more flood coverage. You must do it before the storm hits, and not just days before.

How well you protect the things you need is almost as important as what you insure against losing. Some carriers are now offering “green” insurance to cover environmentally friendly installations such as solar panels. Experts suggest adding coverage for these improvements.

“The expense of the solar panels will cost more to the building, which will increase insurance premiums,” says Martin Brody, an independent insurance specialist working with Accentria LLC in Boca Raton.

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