Finding the Right Insurance Agent: 15 Important Factors to Consider

As a board member of your community association, it's time to review your insurance policies and provider. While continuing with your current provider might seem convenient, exploring other options could lead to substantial savings.

Feeling a bit apprehensive about changing insurance providers is natural. However, whether you have a supportive community association management company or are making the decision on your own, just follow these steps to find an agent and policy that could save you money while maintaining excellent coverage.

Assess the Agent’s Experience in Community Associations

Choose an agent and company with a track record of experience in community associations similar in size and type to yours. The agent should have access to insurance carriers suitable for your property and be able to produce proposals from multiple carriers—ideally two or more.

Ensure the Agent Understands Your Needs and Regulations

Your agent should be knowledgeable about your association’s unique aspects, such as its layout, values, and insurance history. Moreover, they must understand your state’s community association laws and be well-versed in the market.

Clarify If the Agent Is Selling or Consulting

Recognize the difference between a consultant and a salesperson. A true consultant listens to your needs and recommends products accordingly, while a salesperson aims to sell you what they have.

Demand Layman’s Terms Explanations

Insurance jargon can be confusing. Your agent should clearly communicate coverage details without technical language, ensuring effective communication not only with you but also with your board.

Request a Comparison of Coverage and Premiums

It’s crucial to grasp your coverage options and the associated premiums and deductibles. Your agent should provide detailed comparisons to aid your informed decision.

Confirm the Agent’s Property Value Verification Knowledge

A proficient agent should collaborate with an appraisal service. Avoid agents who suggest market value or developer cost. They should be able to explain terms like “insurance to value,” “guaranteed replacement cost,” and “full replacement cost coverage.”

Look for Compliance and Constructive Feedback

When submitting a request for proposal, find an agent who responds thoroughly and offers constructive feedback. They are experts, and their feedback can be valuable.

Verify an Objective Professional Relationship

Ensure your agent maintains a professional relationship without being too close to board members. An objective approach is crucial.

Check the Agent’s Reputation

Research potential agents to confirm they handle claims thoroughly and promptly. Also, assess the reputation of the carrier they represent.

Consider the Agent’s Relationship with the Carrier and Community

While this may be challenging to determine, a good agent should have a solid relationship with the carrier for swift solutions during a significant loss. An agent who works well with your board and community can ease tensions in tough times.

Evaluate the Agent’s Responsiveness

Your agent must expedite certificates of insurance in the event of a claim, responding swiftly to urgent requests without hassle.

Inquire About Communication with the Board

Good agents often provide informative communications for the community, including coverage details and personal introductions.

Ensure Sufficient Backup

Your primary agent may not always be available, so it's essential they have a robust support team to ensure continuous service.

Request Referrals and Verify References

Reach out to trusted colleagues for recommendations. Ask the agent for references and diligently verify them. Also, check the insurer’s credit rating with a reliable agency like A.M. Best Company.

Prepare Proposals in Advance

Begin the process 90 to 120 days before your current coverage expires. To avoid confusion and ensure timely and accurate information, consult professional help to craft a procurement process for agents. Invite board members, committee members, and your association attorney to attend agent presentations, but only after privately reviewing the bids.