(Honolulu, Hawaii) It is understandable for this to come from a condo management association. Source:
It is standard for a condo association board to require owners to carry liability insurance, typically ranging from to cover accidents, injuries, or negligence within the unit, often protecting the association from lawsuits.
I live in a condo and own two units — one I'm occupying and one that I was renting to my son. I have ample insurance on both. The association has always been fine with my insurance levels. My son recently moved out and I hired a property manager (unaffiliated with the association) to find me a tenant.
The property manager now wants much higher insurance levels that I have. What's going on here? What risk does the property manager incur to his business by my having a lower insurance level?
Why are property managers involved in telling condo owners how much personal liability insurance they should have?
byu/Markdd8 inRealEstate
Posted by Markdd8
4 Comments
Replacement cost has increased, everywhere. I am in the midst of projects where building product vendors and suppliers simply cannot deliver without greatly increased cost to the owner. It’s close to “impossiblity of performance” for some. And you policy limits need to anticipate that in the event of casualty loss.
I would talk to your insurance agent, take the Property Manager’s request with a grain of salt. Or get a new Property Manager.
Your property manager relies on you for income. They’ve lost too many clients to not having enough liability insurance
How much are we talking about here..?