The discounts offered by most insurers break down into two types, policy related discounts and property related discounts. This is true not only for Condominium/HOA master policies but for all types of habitational and commercial real estate insurance policies. Policy related discounts most often include Multi-line Discounts, when applying for Business Auto or Workers Compensation policy in addition to the Master policy, Paid in Full discount when agent processes full policy premium with the carrier at the time of issuance (credit card or electronic payment), Automatic Recurring Payment discount for policy renewals.
Property related discounts vary from carrier to carrier but can be given on the basis of assessing the overall condominium condition, including the exterior level of maintenance of the building, the shape of the common areas, including stairwells, and sidewalks leading to the building entrance. It’s important to remember that insurance companies are most interested in preventing injuries and claims by ensuring that the areas most prone to accidents are property maintained, lit and secured. As such, some insurance companies will offer an additional discount to the premium when the condominium association takes active measures to prevent slip and fall injuries.
Overall, we can single out three most substantial policy discounts:
Deductible - The deductible is the portion of the loss that you agree to retain. The deductible is the portion of the claim the insured agrees to pay out of pocket. The higher the deductible you choose to apply to the HOA master policy the lower the final premium. Deductibles range from $1,000 to $100,000, and sometimes higher when larger buildings are involved. You get to choose your deductible; your agent is best suited to guide towards the best deductible choice given the policy size and building particulars. You can read more on how to best select the right policy deductible here.
Sprinkler System - Wet, dry, or chemical systems all apply for hefty discounts.
Central Fire Alarm - Fire alarms that report to a central station or monitoring service are eligible. A certificate of service will generally be enough for applying this discount to the policy.