When taking out an insurance policy, attention should be paid to the coverage, terms and conditions of the policy.
A reputable insurance company should be chosen. To attain the best value and secure the greatest insurance coverage with the most reasonable premium, quotations from a number of reliable insurance companies should be compared before effecting any insurance policy.
If insurance is arranged by the property manager, the policy should be taken out by the Owners' Committee jointly with the manager. Buildings with Owners' Corporation (OC) shall take out the policy of Third Party Risks Insurance in the name of the OC.
After the policy has come into effect, a copy should be obtained from the property manager.
Information given to the insurance company must be accurate. Failure to do so may render the insurance policy void and indemnity may not be paid.
An appropriate level of coverage and sum insured, for example -
Property-All-Risks Insurance - the amount should be able to cover the current cost of repairing the common parts or replacing the common properties of the building.
Third Party Risks Insurance - the amount of coverage is usually determined on the basis of the highest compensation payable for a single accident. Generally speaking, a larger building or a building with greater pedestrian flow requires a higher amount of coverage.
Employees' Compensation Insurance - the amount of coverage should usually be determined on the basis of the total annual income of all the employees, including salaries, double pay, bonus, allowance, cash award, etc.
The OC should review the amount insured for various types of insurance for the building annually.
The OC should make available for inspection by owners and relevant parties the insurance policy and receipt of the latest premium.
In case of any accidents, the insurance company must be informed immediately in accordance with the policy requirements.