Insurance and Deductibles
Our current Condo Insurance Policy (HUB) shows the highest Insurance deductible as $25000 for water-sewer related claim / $30000 if vacant unit.
Our Board set $35000 aside & plan to build it HIGHER in untouchable “deductible savings account” ( from Operating monies ) and raise fees to do so. ( In case deductible goes up next year I guess??) Essentially Owner monies have been creating a mini “Reserve Fund” of Operating money.
The actual RF benefits from surplus Operating as well, with portions of Operating surplus being transferred into it at year end too. (Over $20k in past 5 yrs). So would the fees increasing be a bit of a cash grab from Owners’ pockets these past 5 years?? We have lived in community less than 5 years
Does deductible have to be sitting in savings for perpetuity? Does the deductible get paid up front in an insurance claim or deducted from the settlement costs and paid then?
Our self-managed Board Treasurer claims, & has convinced the Board , the deductible (this Operating $$ ) has to be in an untouchable Operating savings acct or we cannot get insurance for our Corporation. HUB says having the deductible set aside is a good idea, but not a requirement.
Does anyone know how insurance claims get handled? Do contractors want to see the deductible $$ is there before they start to work?
Are any or some of these Treasurer / Board claims more disinformation or misinformation than actual solid financial policy?