In 2004, Community Association Underwriters of America, Inc. [CAU], our insurance provider, sent out a representative from their company to review our property. Together with a review of our books, and other information, CAU determined that we were a good risk, and decided to lower our insurance premium. This is an excerpt from the January 11, 2005 monthly homeowners meeting minutes:
“Our insurance policy was renewed. We received a reduction in our premium. This savings was due in part to recent improvements made to our condominium complex, as well as maintaining adequate financial reserve accounts”.
On March 3, 2005 the Kenthill Townhomes Board of Directors received a letter from CAU. This is the contents of that letter.
“Dear Board,
CAU and your agent and are constantly developing innovative services to continue to enhance your insurance program. We have established a new risk management program to help make your community as safe and secure as possible.
Within the next 10 days, a risk management representative will be contacting you to conduct a risk management survey. Based upon this survey, we will provide the board, management, and your agent with important information and recommendations that may help prevent future injuries and property damage.
While it is not absolutely necessary for an Association representative to accompany our representative during the survey, we do encourage. Nothing is more convincing about the benefits of this service then seeing one of our professionals and action. Also, it gives you the opportunity to make CAU aware of any specific concerns and he may have.
It undoubtedly will be necessary to have an Association representative available for certain areas that need to be viewed. For example, where we provide residential building coverage, our representative usually needs to enter one of the units to inspect plumbing and electrical systems. Also, the representative will most likely ask to gain access to the attic to inspect the roof and ventilation systems. The representative will need to review the Association's files for current certificates of insurance for service providers, the hold-harmless or indemnification provisions for contracted services and lease or rental agreements.
This risk management service is available exclusively to CAU clients for insurance related purposes. The information obtained in the survey is confidential and will only be used by CAU.”
