I was recently asked to provide a timeline for community managers and boards of directors to help them understand the insurance proposal process. I’ve shared many times that my job as an insurance professional is to paint a picture of each community – one that highlights the proactive steps taken to make them a better risk for a carrier to consider. Building the palette to paint that picture is a cooperative effort and the more information provided by the community in advance, the more beautiful and accurate the picture becomes.

So where – better yet when- do we start?

It depends. The older the community, or the more complicated, the better to start as far in advance as possible. I’ve had troubled communities start preparing for the next year while the ink was still wet on their renewal!

If the community is more than 30 years old, more documentation is required for underwriters. Aging infrastructures are a major concern, and carriers want to know what potential problems have already been addressed and what could be lurking, waiting to develop into a claim. Items of concern include electrical systems, plumbing, and roofs. Information including inspection reports, invoices or warranties showing replacement dates, and copies of permits are types of documentation that are helpful.

Speaking of claims…

Recent loss history reports are required and must be dated within 90 days of submission. Keeping in mind that these often take some time to be received, it is beneficial to just get into the habit of requesting these reports every year. It is also helpful for managers to review the reports for any surprise claims, or to ensure that old claims have been closed.

If there is a claims history, you will want to provide information on how the issue was addressed to prevent recurrence. For example, Let’s say there was a fire in the community. Sharing fire safety information in a newsletter or having the fire department come to a meeting to talk about fire prevention are great, proactive measures. If there are water loss claims, providing information to show that the cause has been addressed (member education, hydro-flushing, or community re-pipe for example) shows the carrier that risk management steps have been taken.

The Take Away

As you can see, there are many items to be considered and gathered while working on an insurance proposal. If you have most of these documents already, the timeline is sped up considerably. If not, it is best to start working on them as early as possible. The more information you can pre-load for your insurance professional, the easier it will be to get a timely and positive response from the carrier underwriter.

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