Risk Management
Risk Management for Community Associations
Insurance transfers risk. Risk management helps determine what should be transferred, reduced, retained or managed differently.
Areas of focus
Where community risk is actually created.
Most of what determines an association’s insurance experience happens long before renewal: how property is maintained, how contractors are engaged, how funds are controlled, and how losses are documented and corrected.
Property risk
Building characteristics, roof condition, envelope integrity, updates to major systems and how that information is documented for underwriters.
Catastrophe preparedness
Hurricane, hail, wildfire, freeze and flood planning, including shutdown procedures and post-event response roles.
Vendor risk transfer
Written insurance requirements, additional insured status and indemnity provisions appropriate to the scope of work.
Contract review considerations
Identifying insurance-related provisions in vendor agreements that may warrant discussion with the association's legal counsel.
Certificates of insurance
Collecting, verifying and tracking certificates before work begins rather than after a loss.
Water damage prevention
Supply lines, water heaters, HVAC condensate, sprinkler systems and shut-off protocols — the most frequent habitational loss driver.
Roof management
Age tracking, inspection cadence, documented repairs and replacement planning tied to reserve strategy.
Life safety
Egress, lighting, alarm and sprinkler maintenance, stair and railing condition and inspection records.
Pool and amenity risk
Access control, signage, depth markings, rescue equipment, gym and playground conditions and rule enforcement.
Cybersecurity
Email compromise, fraudulent payment instructions, vendor banking changes and homeowner data handling.
Crime and financial controls
Dual authorization, separation of duties, reserve account oversight and reconciliation practices.
Claims trend analysis
Reading loss runs for patterns — cause, location, season and severity — rather than treating each claim as isolated.
Loss control
Practical corrective actions after a loss, documented so underwriters can see the change.
Emergency response planning
Contact trees, vendor pre-arrangements, resident communication templates and documentation procedures.
Board governance risk
Meeting records, election procedures, enforcement consistency and documentation of decisions.
Coverage depends on the specific policy language, endorsements, facts of the loss and applicable law. This page is general information, not legal advice or a statement that coverage applies.