Insurance carriers that provide condominium association insurance policies want to insure buildings where the probability of claims being filed is low. Consequently, many are likely to investigate the following:

• The overall claims history over the last two years.
• The history of roof leaks and homeowner claims over the last two years and how they were handled.
• The history of pipe leaks and homeowner claims over the last two years and how they were handled.
• The history of wood siding leaks and homeowner claims over the last two years and how they were handled.
• Does the association have a current reserve study prepared by a qualified provider and are the reserves adequate?
• Does the association have a realistic operating budget that provides at least 10% being set aside for reserves?
• Does the association have operating rules that prohibit dangerous breeds of dogs such as Pit Bulls, Rottweilers, Perro de Pressa Canarios, Akitas, German Shepherds, Chow Chows, Dobermanns, and Alaskan Malamutes?
• Are the association's CC&Rs reasonably current, reflecting the current law?
• Does the association enforce a reasonable assessment collection policy that is designed to minimize delinquencies and maximize cash flow?
• Are the association's operating rules free of any rules that can be considered discriminatory against any protected class including children?
• Does the association have experienced, professional HOA management?
• Do the association's CC&Rs require smoke and carbon monoxide detectors and self-certifications?
• Are unlicensed contractors permitted to do work for the association that requires a California contractor's license?
• Are contractors hired by the association required to have liability and worker's compensation insurance?
• During the last two years, have any members of the association filed lawsuits against the board or any of the current board members? What was the result?
• Is any swimming pool area gated and does it display pool rules required by law?
• Are there any steps, walkways, or stair rails needing obvious repair?
• Are outdoor lights working and are they routinely checked?
• Does the association have current health and elevator permits for the county?

While all insurance companies will not address every one of the items listed, some will. To help minimize the risk to the homeowners in your association and minimize costs and liability, it is strongly suggested that boards protect their members where possible.