The Role of the Condominium Manager in the Claims
The condominium manager’s role in the claims process includes:
Notifying the insurer promptly when a loss occurs.
Assisting the board in gathering required documentation.
Coordinating repairs with approved vendors.
Ensuring compliance with CPA insurance regulations.
Updating unit owners regarding insurance claims that affect them.
Steps to Submit an Insurance Claim Under the CPA
Step-by-Step Claims Process
Incident Occurrence:
Identify the event (e.g., fire, water damage, vandalism).
Ensure emergency response measures are taken (e.g., stopping water flow, securing property).
Document the Damage:
Take photos and videos of the affected areas.
Obtain written statements from witnesses or involved parties.
Notify the Insurer Promptly:
Report the claim as soon as possible to the corporation’s insurer.
Include details of the event, affected areas, and potential costs.
Provide Required Documentation:
Completed claim forms.
Board resolution (if applicable).
Copies of contractor repair estimates.
Adjuster Inspection:
The insurance company assigns an adjuster to assess the damage and determine coverage.
Approval or Denial of the Claim:
If approved, the insurer issues payment and repairs commence.
If denied, the corporation may appeal the decision or explore alternative funding options.
Repair Completion & Final Reporting:
Repairs must align with the corporation’s Standard Insurable Unit Description (SIUD).
Unit owner chargebacks may apply for deductible amounts.
Important Considerations:
The corporation is responsible for insuring common property and property outlined in the SIUD.
Unit owners are liable for up to $50,000 of the deductible if damage originates from their unit.
The corporation must complete repairs regardless of the cause of damage and recover applicable costs from responsible parties.
Required Documentation for a Claim
Key Documents for an Insurance Claim
Incident Report: Detailed description of what happened, when, and who was affected.
Photos & Videos: Visual evidence of damage.
Repair Estimates: At least two quotes from licensed contractors.
Board Resolution (if required): Formal approval from the board to submit the claim.
Insurance Policy Details: Proof of coverage and deductible amounts.
Board & Unit Owner Communication Requirements:
The board must be informed of all claims affecting the corporation.
Unit owners must be notified of claims that impact them, including potential chargebacks.
If repairs affect common property, owners must receive an update on progress and expected costs.
Common Mistakes and Delays in Claims Processing
Common Claim Mistakes & How to Avoid Them
Mistake | Why It Causes Delays |
Late Reporting | Insurers may deny claims if reported outside the allowable timeframe. |
Missing Documentation | Incomplete claims slow processing and may result in rejection. |
Incorrect Unit Owner Information | Delays in chargebacks and unit repairs. |
Failure to Obtain Board Approval | Some insurers require formal board approval before processing claims. |
Insufficient Repair Quotes | Insurers often require multiple estimates for repair costs. |
Mistake | How to Avoid It |
Late Reporting | Always report claims as soon as possible and confirm deadlines with the insurer. |
Missing Documentation | Use a claims checklist to ensure all required documents are submitted. |
Incorrect Unit Owner Information | Ensure unit owners receive clear, written communication about their responsibilities. |
Failure to Obtain Board Approval | Secure board resolutions in advance for major claims. |
Insufficient Repair Quotes | Obtain at least three repair estimates before submitting the claim. |
