One of the most major aspects of a Common Interest Development's (CIDs) master insurance policy is the coverage for the Association's property. For a CID, the property to be covered under the master insurance policy includes commonly owned structures (if applicable) and commonly owned property (landscaping, specified properties such as roads/walls/walks/fencing/common area railings, etc.)
Insurance to Value
For any community, the most important aspect of property insurance is to make sure that there is adequate insurance coverage for 100% replacement of the insured property. Not only is insurance to 100% replacement common sense, but it's a requirement of the CC&Rs and federal lending guidelines for community associations.
Every proposal from our agency comes with a replacement cost report to demonstrate where your community's insurance limits came from, as oftentimes the limits are in place because a broker or agent just bid what a community had previously. Insurance limits should be reviewed annually, as the entire purpose of insurance is to transfer risk to the insurance company in exchange for premium.
Is your risk exposure being reviewed on an annual basis?