If your condo association in Arizona has recently received notice that American Family is dropping its master condo association policy, you may be wondering what steps to take next. Losing coverage can be stressful, but with the right approach, you can secure a new policy that meets your community’s needs.

Need a new master condo association policy? Our independent agency works with several AM Best A-rated insurance companies to find the right coverage for your community. Contact us today for a free consultation and quote!

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1. Understand Why Your Policy Was Dropped

Insurance companies may discontinue coverage for various reasons, including:

  • Increased risk factors, such as frequent claims or natural disasters
  • Policy restructuring or changes in underwriting guidelines
  • Rising insurance costs leading to reduced coverage in certain markets
  • Product is being terminated by the carrier

Review the non-renewal notice from American Family to understand their specific reasoning.

2. Act Quickly to Avoid Coverage Gaps

Your condo association must have a master policy in place to comply with lender and legal requirements. A lapse in coverage could leave your community exposed to significant financial risks. Begin the search for a new policy as soon as possible.

3. Assess Your Condo Association’s Insurance Needs

Before seeking new coverage, determine what your policy should include:

  • Property Coverage: Protects shared structures, common areas, and external building elements.
  • General Liability Insurance: Covers legal expenses if someone is injured in a common area.
  • Directors & Officers (D&O) Insurance: Protects board members from personal liability.
  • Flood or Earthquake Coverage: May be necessary depending on location.

4. Work with an Independent Insurance Agency

Finding the right replacement policy can be challenging, but an independent insurance agency can help. As an independent agency in Arizona, we work with multiple carriers to find competitive master condo association policies tailored to your needs.

5. Compare Quotes from Multiple Providers

Each insurance company has different underwriting guidelines and pricing structures. By comparing multiple options, you can secure the best coverage at the most competitive rate. Key factors to consider include:

  • Coverage limits
  • Deductibles
  • Policy exclusions
  • Premium costs

6. Review and Update Association Bylaws

Your condo association’s governing documents should align with the new insurance policy. Ensure that all homeowners understand their responsibilities regarding individual unit coverage and potential assessments.

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7. Communicate with Homeowners

A sudden change in insurance can raise concerns among residents. Keep homeowners informed about the situation, the steps being taken, and any changes to their individual insurance obligations.

8. Secure Your New Master Condo Association Policy

Once you’ve selected the best coverage, finalize the policy before your current coverage expires. Ensure that all required documents are submitted to lenders and association members.

Get Expert Help with Your Condo Association Insurance

If your master condo association policy has been dropped, don’t wait until the last minute to find a replacement. Our independent insurance agency in Arizona specializes in helping condo associations find reliable, cost-effective coverage. Contact us today for a free consultation and custom insurance quote tailored to your community’s needs.

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