Do Community Associations Always Need Multiple Insurance Bids?
May 13, 2026 | By: RealManage
When it comes to community association insurance, board members are often told that obtaining multiple insurance bids is a “best practice.” But does every community association actually need to solicit multiple insurance quotes every year?
The short answer is: not always.
While comparing insurance bids can help associations evaluate coverage and pricing, there are situations where requesting multiple bids may not serve the community’s best interests. Understanding when competitive bidding makes sense—and when it doesn’t—can help boards make smarter, more strategic decisions that protect both their properties and finances.
Why Community Associations Seek Multiple Insurance Bids
Insurance is one of the largest operating expenses for many associations. Board members also have a fiduciary responsibility to act in the best interest of the community. Because of this, many governing documents, procurement policies, or state statutes encourage boards to seek competitive bids for major contracts, including insurance coverage.
Obtaining multiple bids may help associations:
- Compare pricing and premiums
- Evaluate differences in coverage limits and exclusions
- Assess carrier financial strength and claims handling
- Ensure the association is receiving competitive market rates
- Demonstrate due diligence to homeowners
In some cases, multiple bids are absolutely appropriate—especially if the association has experienced significant premium increases, poor claims service, or concerns about coverage adequacy.
However, insurance is not a one-size-fits-all commodity, and the lowest premium does not always equal the best protection.
Insurance Coverage Is More Than Just Price
One of the biggest misconceptions in community association insurance is that all policies provide equivalent coverage. In reality, insurance proposals can vary dramatically in areas such as:
- Deductibles
- Wind and hail coverage
- Water damage exclusions
- Ordinance and law coverage
- Replacement cost valuations
- Directors and Officers (D&O) liability protection
- Fidelity and cyber liability coverage
An association that focuses solely on obtaining multiple low-cost bids may inadvertently expose itself to significant financial risk.
For example, two policies may appear similar on the surface, but one may include critical exclusions that leave the community vulnerable after a major loss event. An experienced insurance advisor who specializes in community associations can help boards understand these nuances and avoid costly gaps in coverage.
When Multiple Insurance Bids Make Sense
There are several scenarios where obtaining multiple insurance proposals is beneficial and often recommended.
1. Significant Premium Increases
If your association experiences a substantial premium increase at renewal, exploring additional bids can help determine whether the increase reflects broader market conditions or if better options exist.
2. Changes in Property Risk
Major renovations, deferred maintenance issues, aging infrastructure, or new amenities may impact the association’s risk profile. Competitive bidding can help identify carriers better suited for the updated property conditions.
3. Poor Claims Experience
If the association has encountered delays, disputes, or dissatisfaction with claims handling, seeking alternatives may improve service and responsiveness.
4. Lack of Market Review for Several Years
If the association has not evaluated the insurance marketplace in many years, obtaining updated proposals can ensure the current coverage remains competitive and appropriate.
5. Changes in State Regulations or Governing Documents
Legislative changes or amendments to governing documents may require adjustments to coverage that warrant a broader market review.
When Multiple Insurance Bids May Not Be Necessary
While periodic market testing is healthy, requesting multiple bids every single year may not always benefit the association.
1. Insurance Markets Are Limited
Community association insurance is a specialized market. Depending on the association’s location, claims history, age, and risk profile, there may only be a handful of viable carriers willing to provide coverage.
Submitting the same risk to too many brokers simultaneously can actually create market confusion and limit available options.
2. Long-Term Relationships Matter
An established relationship with a knowledgeable insurance advisor who understands the association’s property, finances, and operational risks can provide long-term value beyond annual pricing comparisons.
Experienced advisors often help associations with:
- Claims advocacy
- Risk mitigation strategies
- Insurance education for boards
- Loss prevention recommendations
- Compliance guidance
These services can significantly outweigh marginal premium differences.
3. Frequent Shopping Can Hurt Negotiations
Repeatedly moving coverage between carriers based solely on pricing may negatively impact underwriting relationships and long-term stability. Carriers often prefer communities with consistent management and proactive risk management practices.
4. Market Conditions Impact Everyone
In hard insurance markets—such as periods following natural disasters or widespread claims activity—premium increases may affect nearly all carriers similarly. In these cases, multiple bids may produce little meaningful savings while consuming significant board and management time.
Best Practices for HOA and Condo Insurance Reviews
Rather than automatically seeking multiple bids every renewal cycle, associations should adopt a strategic insurance review process.
Work With a Community Association Insurance Specialist
Community associations have unique exposures that differ from commercial properties or single-family homeowners insurance. Boards should partner with professionals who specialize in HOA and condominium insurance.
Conduct Periodic Market Reviews
Many associations benefit from a comprehensive market review every three to five years unless circumstances justify an earlier review.
Focus on Coverage Quality
Boards should evaluate coverage adequacy, carrier reputation, financial stability, claims responsiveness, and risk management support—not just premium costs.
Maintain Accurate Property Valuations
Underinsurance can create major financial exposure. Regular insurance appraisals and replacement cost studies help ensure proper coverage limits.
Collaborate With Professional Management
Professional community association management companies can help boards coordinate insurance reviews, organize documentation, and facilitate communication between brokers, carriers, and board members.
Frequently Asked Questions About Community Association Insurance Bids
Do HOAs have to get multiple insurance bids every year?
Not necessarily. Some associations may be required by governing documents or policies to obtain multiple bids, but many boards can fulfill their fiduciary duty through a thoughtful insurance review process rather than annual rebidding.
Is the lowest insurance bid always the best choice?
No. The lowest bid may include higher deductibles, lower limits, exclusions, or weaker claims support. Boards should compare both price and coverage quality.
How often should a community association review its insurance coverage?
Associations should review insurance coverage annually and consider a broader market review every few years, or sooner if premiums rise sharply, claims service declines, or the property’s risk profile changes.
Who should help an HOA or condo association evaluate insurance proposals?
Boards should work with an insurance professional who understands community associations, along with their community manager, legal counsel when needed, and financial advisors as appropriate.
The Bottom Line
Community associations do not always need to obtain multiple insurance bids every year. While competitive bidding can be valuable in certain situations, the most important goal is securing comprehensive, appropriate coverage that protects the community’s long-term financial health.
Insurance decisions should be based on more than price alone. Boards that take a strategic, informed approach—supported by experienced community association professionals—are better positioned to manage risk, maintain compliance, and safeguard their communities.
Partner With RealManage for Expert Community Association Support
Navigating insurance decisions can be complex, especially in today’s evolving market. RealManage helps HOA and condominium boards streamline operations, improve financial oversight, and connect with trusted industry professionals who understand the unique needs of community associations.
Whether your board is evaluating insurance coverage, managing vendor relationships, or seeking operational efficiencies, RealManage provides the expertise and support communities need to thrive.
Contact RealManage today to learn how our professional community association management services can help your community operate with confidence.
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