Mastering condo & co-op insurance renewals: Key terms and timelines explained

Insurance renewals are a crucial aspect of a building’s health, ensuring your building remains protected against potential risks. We've developed a structured and streamlined process to manage these renewals effectively. Our approach to insurance renewals is outlined below. We will also clarify the process and key insurance terms to help you navigate this important process.‍

Daisy's two-month insurance renewal process‍

Our renewal process spans approximately two months and is carefully designed to ensure thoroughness and timeliness:

• Initial contact (60 days before expiry): We initiate contact with your insurance broker two months prior to your policy's expiration. This step serves the purpose of verifying if the groundwork for the renewal has already started and to provide any information that the broker might need to negotiate the best possible proposal.
  
  
• Proposal reception (14-7 days before expiry): Your broker submits a renewal proposal, typically between 14 and 7 days before the current policy expires. The exact timing may vary based on the broker and the specific circumstances of your policy.

• Proposal review: Upon receiving the proposal, Daisy conducts a thorough review. We verify all details for accuracy and pose any significant questions to the broker to ensure a comprehensive understanding of the offered terms.
  
  
• Finalizing the selection: Once the board decides on the chosen option, Daisy communicates it to the broker and handles the necessary paperwork to finalize the proposal (bind the policy). In some cases, the board may need to sign documents directly.
  
  
• Invoice and financing: The broker provides invoices after the policy is bound. Daisy then assesses whether a financing agreement is needed for premium payments. If required, we obtain this agreement from the broker and share it with the board for approval.
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• Payment and follow-up: Finally, Daisy manages the payment of the insurance bill and handles any subsequent transactions in accordance with the approved proposal or financing agreement.

Key insurance terms and definitions

Broker: The broker is your knowledgeable advocate, guiding you through understanding and selecting the policy that meets your needs. They negotiate with several insurance companies (carriers) to craft the best possible agreement.

Underwriter: An insurance company professional who evaluates the risk associated with insuring your property and determines appropriate pricing.

Carrier: The insurance company that provides coverage and assumes the financial risk outlined in your policy.

Financing agreement: A contract detailing the terms of paying insurance premiums in installments rather than a lump sum. Financing agreements can either include interest charges if provided by a third party, or transaction fees if provided by the carrier (when applicable). Not all carriers provide an installment option.

Binding a policy: The formal act of a carrier agreeing to provide coverage under specified terms.

Loss: Any financial damage or expense covered by your insurance policy.

Premium: The cost you pay for your insurance coverage, typically on an annual or monthly basis.

Limit: The maximum amount a carrier will pay for a covered loss.

Deductible: The amount you're responsible for paying before your insurance coverage takes effect on a claim.

AM best: A credit rating agency that assesses the financial stability of carriers. Ratings of "A" or "B" indicate strong financial health.

Minimum earned endorsement: A clause specifying the minimum amount of premium a carrier keeps if a policy is canceled before its expiration date.
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By understanding these terms and our renewal process, you'll be better equipped to make informed decisions about your building's insurance coverage. Daisy is committed to guiding you through each step, ensuring your property remains adequately protected.