4. Budget item: Insurance

The Trustees recommend the same insurance coverage for 2021: (2020 rates shown, due in July):

Commercial General Liability - $ 1,000,000 Each Occurrence / $ 2,000,000 Aggregate, Subject to $ 0 deductible for an annual premium of $ 500.  Based on 16 lots in the Association

Directors & Officers - $ 1,000,000 Claims Made Policy Form, subject to $ 1,000 retention.  Annual premium of $ 803.00

Excess Liability - $ 1,000,000 Excess liability limit over the General Liability.  Annual premium of $ 355.

This insurance is necessary to protect homeowners and the Trustees from a litigious environment. Attorney Matt Terry advised us that any potential suit brought against the HOA is executed as a suit against its Trustees and that everyone in the HOA is responsible for any potential legal costs and judgments.  So this insurance protects all of us.

2021 rates are not available now.  Planning for a 5% increase, this brings the cost to:

$1740/yr
($109/yr/lot)

What insurance company are we dealing with? Does it make any sense to get a competitive quote from another company?

Rogers Gray is our agent. Four requests for quotes were filled out last year. Three responded - they all used the same underwriters and were within $5 of each other. It appears there is not much competition on the Cape for this type of insurance. We chose Roger Gray for their service reputation and location. While we have not required much service, they have been very responsive and in fact, gave us a better rate than initially quoted.

Thanks for the information and quick reply. Good to know you are using Rogers & Gray. They are our insurance agent and we have found them very helpful, prompt and competitive.