Who asks a master association for what
| Who | What they usually want to see |
|---|---|
| Banks, lenders & SBA loans | Property or auto physical damage with the lender as loss payee, and liability proof at closing and every renewal |
| Property managers & HOAs | General liability with the manager and owner as additional insureds, and workers' compensation |
| Cities, counties & permits | General liability, auto and workers' compensation at the limits in the permit or contract |
Each of them wants a certificate, and most want it again at every renewal. A live certificate link from the wallet shows today's coverage to every holder and tells them when it changes.
How to check what you already have
- Property section. Limits for building, business personal property and tenant improvements against replacement cost, the coinsurance percentage, the deductible, and whether flood and earthquake are excluded (they usually are).
- General liability declarations page. Three liability numbers matter: each occurrence, general aggregate and the products–completed operations aggregate. Then the forms list: blanket additional insured, waiver of subrogation and primary and non-contributory wording satisfy every contract; scheduled forms satisfy one.
- Directors and officers declarations. Entity coverage, employment practices if packaged, the retention, and the exclusions for prior and pending matters.
- Crime declarations. Employee theft, forgery, funds-transfer fraud and social engineering each have their own limit; third-party coverage if you work in clients' premises.
- Umbrella schedule of underlying insurance. Each primary policy listed with the limits the umbrella expects; a gap between the two is uninsured.
- Workers' compensation information page. Item 3.A must list every state you work in, item 4 must carry the right class codes, and the employers' liability limits should meet what contracts ask. Check that the estimated payroll is close to this year's.
- Flood policy. Building and contents limits, the zone, the waiting period before coverage starts and whether the policy is federal or private.
- Business owner's policy declarations. Liability limits on the first page, then the property section: building (if you own), business personal property, business income and the named extras such as spoilage, equipment breakdown or employee dishonesty. Confirm the property values are current.
- Business income. The limit or actual-loss-sustained wording, the waiting period, the period of restoration and whether extra expense is included.
- Participant accident. The medical limit per injury, the deductible, whether it pays primary or excess of the family's health plan, and the activities covered.
- Special events coverage. Whether the annual policy already covers your events or each needs a separate policy, and the additional-insured wording venues ask for.
What usually goes wrong for master associations
- Lakes, trails and roads with an exposure the sub-associations assume the master carries.
- Agreements between master and sub-associations that leave gaps in who insures what.
- A master policy deductible that owners do not know they share.
- Lender certificate requests answered from last year's policy.
- A fidelity limit below what lenders and the statute require for the funds on hand.
- A management company not named on the fidelity bond that handles the account.
What underwriters will ask a master association
- Sub-associations and residents served, amenities and infrastructure owned, water features, and cost-sharing agreements
- Number of buildings and units, construction, age and exterior updates
- Whether the master policy is bare walls, single entity or all-in, and the deductible
- Number of units, reserves on hand and who manages the money
- Any pending litigation, special assessments or enforcement disputes
- Square footage, whether you own or lease, the building's age and sprinklers
Have the answers in the wallet before the renewal and the quote request fills itself in; CoverMatch sends one application to every eligible carrier and lines the quotes up against what you have.
Renewal timing
Lenders and owners ask for certificates all year, and the master policy's values and deductible should be reviewed before each renewal, not after a loss. Renewal autopilot starts the comparison sixty days out with the building schedule prefilled.