Insurance Renewals: A Reality Check Boards Can Explain

Insurance is one of the scariest budget lines because it’s both essential and volatile. The answer isn’t spin—it’s preparation and plain language. Here’s a practical approach to renewals you can defend and explain.

1) Build the renewal packet early.
Your manager or broker can help assemble: current policy declarations, loss runs (past claims), updated building/asset schedules, recent reserve study highlights, and any mitigation improvements (roof, security, flood, life safety). The cleaner your packet, the fewer assumptions underwriters make for you.

2) Forecast honestly with scenarios.
Before quotes arrive, set three placeholders: conservative, likely, and stretch. Document your assumptions (e.g., “+15% on property based on broker guidance”). Use scenarios to decide in advance what offsets you’d consider: deductibles, endorsements, or phased capital work—then discuss openly.

3) Look for value, not just price.
Side‑by‑side comparisons should include coverage differences, deductibles, exclusions, and carrier strength. Create a one‑page summary your board and homeowners can read without a decoder ring. Ask your broker to highlight “what changed and why” between expiring and proposed.

4) Mitigation and documentation matter.
Underwriters price risk, not hopes. Keep records of completed projects, maintenance logs, and inspection reports. If you’ve invested in mitigation (new roof coverings, lighting, drainage), put it in the packet. Practical risk management can influence pricing and insurability over time.

5) Communicate the ‘why’ before the vote.
Release a plain‑language explainer: what’s driving the change, what you compared, and how the board chose—linking to the summary sheet. Translate impacts to the monthly level and show what’s being done to manage risk next year.

6) Decide with eyes open.
If you change deductibles or limits, say so clearly, with examples. Note any exclusions that require homeowner awareness (e.g., water damage coverage nuances). Clarity is part of the decision, not an afterthought.

Quick tools

• Renewal one‑pager template (carrier options, key coverages, premium, deductibles, notes)

• Assumption log (source, owner, due date)

• Mitigation tracker (what, when, evidence)

This approach won’t eliminate increases, but it will replace surprise with understanding—and that builds trust.

Educational content only; not legal advice.
This is the kind of structure we implement with partner communities through JAM Consults and the Board Member Society.