Did you know that at least 73 million people in the US reside in condominium communities or homeowners associations? These associations are essential for providing maintenance, upgrades, and security for their communities. They're also the reason most condo buildings are thriving communities that people enjoy living in.

It can be overwhelming to get started when you're looking to form a condo association for your condo community. Many pitfalls can happen if you don't understand what a condo association is all about and where you need to begin.

You can start the process by reading this guide to learn about starting a condo association for your community!

What Is a Condo Association?

A condo association is a legal entity that governs a community of condominiums, and owning a condo automatically makes the owner a condo association member.

Usually, the original condo developer will file a declaration of Covenants, Conditions, and Restrictions or CC&Rs. This document typically establishes a condo association's authority to control the property, resolve disputes, and collect dues.

Sometimes an article of incorporation is also filed if the association is to act as a corporation. Either way, in most states, condo associations are considered a legal entity regardless, even if nothing is officially on file.

Compared to a homeowners association, where each member owns their own property and lot, condo association members own their own individual units. They also have a joint ownership stake in the lobby and public community areas.

Condo associations follow state laws and have the ability to:

• Enforce rules and regulations
• Collect fees from condo owners
• Put liens on condos if owners fall behind on fees
• Take care of maintenance and repairs of common areas

Condo associations also have elected board members and sometimes hire a condo management company to oversee the property's daily operations. They're also responsible for setting up specific rules and regulations for the entire community to follow.

Board Structure for a Condo Association

A condo association will elect board members who are responsible for governing the association. The condo association board members have specific tasks such as:

• Hiring and firing employees
• Maintenance
• Making legal decisions
• Appointing committees
• Applying penalties for rule violations
• Deciding on insurance coverage
• Planning for future building repairs
• Establishing monthly condo association fees

Typically the board structure includes:

President

The board president handles daily operations, presides over all meetings, and acts as the main representative for the condo association.

Vice President

The vice president will step into the president's role whenever they are unable to fulfill their duties for any period of time.

Secretary

A secretary keeps meeting minutes, records votes, and keeps track of the association records. They'll also notify condo owners of upcoming meetings and ensure all documents are kept up to date.

Treasurer

The treasurer manages all the financial matters of the association. They'll distribute and receive funds on behalf of the condo association. They'll also be responsible for signing any checks and preparing the annual budget.

Steps to Forming a Condo Association

Now that you understand more about the basics of a condo association, you can move on to forming the association.

It's best to start by focusing on getting the general structure of the association set up first and electing board members. The easiest way to do this is to hold an initial meeting to make sure the basics are taken care of.

Schedule the First Meeting

Once the condo association is formed, you'll need to start the process of creating a governing board and addressing tax and legal issues. A list of items to cover in your first meeting includes:

• Hold an election to choose the governing board members
• Obtain a tax identification number to identify the association for tax purposes
• Open bank accounts
• Establish condo management and hire employees

Everybody who lives in the condo community is responsible for paying monthly condo association fees. These fees pay for services like building maintenance, amenities, and security.

You'll need to establish these monthly condo fees and determine a collection procedure. Many condo associations now use online payment systems that allow residents to pay their fees online. This allows you to easily keep track of all payments and apply late fees automatically.

Set the Rules and Regulations

The next thing you need to do is agree upon a set of rules and regulations the community has to follow. Condo association rules and regulations are typically based on common property and maintenance issues such as:

Usage of Common Areas

You'll need to decide on a set of rules for the use of common areas in your community. Make sure to cover the usage of lawns and walkways. You'll want to prohibit owners from obstructing walkways or entryways with bicycles or personal property.

It's also important to set a maintenance schedule for things like lawn care, snow removal, and general cleaning up of all the common areas.

Usage of Recreational Areas

Many condo complexes have recreational areas for younger kids and teenagers. You'll need to ensure the use of these areas is limited to certain times of the day. It's also important that the recreational areas are safe for children and there is no potentially dangerous equipment.

Also, condo associations don't often allow residents to barbecue on their balconies, so you'll need to decide if a shared recreational area for barbecuing is the better option for your community.

Pets and Other Animals

Condo associations can limit the number of pets residents have or even ban certain types of pets from the community. Also, many condo associations don't allow the breeding or raising of animals on the property.

You can start with deciding on what types of pets are allowed and how many can live in each unit at a time. It's also important to implement rules on how residents must keep their pets. These usually include keeping pets on a leash and cleaning up their waste from the ground.

Loud Noises

Any loud noises or disturbances that disturb the peace of other condo owners need to be taken seriously and dealt with immediately.

So, it's a good idea to address unreasonable and loud noises coming from units throughout the day. You can consider a rule that prohibits loud music or other noise from 11 pm to 7 am and all day on Sundays.

Garbage Disposal

It's also essential to address how unit owners need to dispose of their trash. Most condo buildings have a garbage chute system, so many condo associations require unit owners to dispose of their trash this way.

A garbage chute is a long vertical space that passes through each floor and drops into a dumpster at the bottom. Though a chute system creates easy trash removal for a condo unit, it can get blocked if residents don't use it properly.

You'll need to post rules on proper garbage chute use to ensure that unit owners take large items like cardboard, packaging, appliances, or broken furniture down to the trash.

Buy Condo Association Insurance

Another important step in forming a condo association is getting the right type of insurance coverage. Condo association insurance policies are necessary for condo associations to cover costs resulting from lawsuits.

Condo association insurance deals with the general common areas of the building and provides both liability and property coverage. Condo insurance can also cover a wide range of situations, and you'll easily be able to find common types of coverage that include:

General Liability Insurance

General liability insurance is one of the most important types of condo policies you can have for your condo association. This type of insurance covers the cost of any lawsuits that result from an accident that occurs inside the building, such as:

• Slip and fall accidents during repair work
• Lawsuits for failure to provide adequate security for condo owners
• Lawsuits resulting from accidents in shared spaces like a pool or fitness center

Worker's Comp Insurance

Worker's comp insurance will cover you if a worker or volunteer gets injured while working for your condo association. This type of insurance will cover the costs of injuries, illnesses, and disabilities that may occur.

Single Entity Coverage

This coverage will cover the individual condo unit finishes but does not cover any of the owner's personal property. It also doesn't cover any upgrades an owner makes to a unit, like countertops or floors.

Fidelity Liability

This insurance will cover any costs that result from the embezzlement or theft of money from the condo association from another board member.

Get Insurance for Your Condo Association Today

Remember, one of the most important steps to forming a condo association is ensuring you have the right insurance coverage.

It's time to turn to Hummel Group for your insurance needs. We've been in business since 1957 and will work hard to find you the best insurance solutions. We work to build relationships with our clients and will keep taking the time to listen to your needs and concerns.

Make sure you contact us today to discuss what insurance options will work best for your condo association!

The market for dump trucks globally is expected to reach $10.83 billion (U.S. dollars) by 2026. Dump trucks are more accepted today as the mining and construction industries continue to grow.

When you have a dump truck business, you need dump truck insurance. Primarily, you need it because policies for dump trucks are different than other policies. Typically, a general business policy will not provide what you need to be covered.

In this article, we will tell you what you need to know when it comes to insurance for dump trucks, including who needs it, what it covers, and approximately how much it may cost.

Do not let your valuable dump truck company incur damage without the proper coverage! Here are more details to keep you safe.

Dump Truck Insurance Is a Specialty Insurance

This kind of coverage falls under the category of commercial vehicle insurance.

Insurance for dump trucks covers company vehicles that transport dirt, gravel, sand, asphalt, rock, and other loose materials that companies use in construction, fracking, mining, quarries, road work, agriculture, etc.

Because of their massive size, dump trucks are classified as heavy-duty commercial vehicles. This introduces unique challenges for insuring a business and its dump trucks.

Large-sized dump trucks like Freightliner, Mack, Peterbilt, and Sterling have a gross vehicle weight of over 45,000 pounds. For a tractor that pulls a dump trailer, it can have a gross vehicle weight of over 80,000 pounds.

Typical Dump Truck Accidents

Unlike other commercial vehicles, they generally make dump trucks for construction sites and off-road.

If an accident occurs, they are more likely to be involved in an overturn or backup accident. That is because drivers often use dump trucks in roadwork zones or construction sites.

For these reasons, dump trucks need a specialty policy built to cover the unique risks of a dump truck.

Who Needs Dump Truck Insurance?

The answer is broad. An independent owner-operator who possesses his or her own dump truck should have dump truck insurance. An independent contractor who operates someone else’s dump truck should have it too.

Plus, a dump truck company with a fleet of company vehicles should have very broad insurance coverages and a thorough review by an agent they trust.

Specialized insurance coverage for dump trucks is needed for any business that owns or operates a dump truck, whether for themselves or for hire.

What Insurance Coverage Do You Need?

Usually, insurance policies for dump trucks have the following types of coverage in them.

Primary Liability

If you have an "at-fault" accident, this covers damage or injuries to other individuals or property.

Physical Damage

This coverage takes care of your trailer and truck in the event of an overturn, collision, fire, flood, theft, vandalism, and other perils.

Personal Injury Protection and Medical Payments

Regardless of fault in an accident, this coverage will pay for medical bills and other expenses for both the driver and passengers in the company vehicle who may have an injury because of an accident.

Downtime

This is for lost income and you can add it to the physical damage policy. It is an additional layer of protection.

In case your vehicle is inoperable, with downtime coverage, you can keep payments on your truck and your other bills up to date for an extended time. Many carriers have a $100 per day downtime limit for up to 35 days.

Lease or Loan Gap

Sometimes when you finance equipment like a trailer or truck, it will depreciate faster than the value of the finance left to pay. This coverage takes care of the lease or loan gap. The last thing you want is an “upside down” lease or loan in case of a total vehicle loss.

Truck Rental Reimbursement

When you have a collision or comprehensive loss, you still need a dump truck to keep working. Adding truck rental reimbursement can help you when you add it to your physical damage policy.

With this, you can rent a replacement trailer and truck. For a large part of the cost of the rental, you will receive reimbursement.

Most States Require Dump Truck Insurance

Each state will vary, but many states require you to have a certain level of liability insurance for your dump truck company. A trucker will need to file a form E with the state of residence.

When you file a form E, it certifies that the liability insurance from the dump truck company complies with responsibility laws per the state requirement. Each state varies with its limit for liability requirements.

In the case you have a dump truck business that must cross state lines to operate, then your dump truck company must register with the FMCSA. You will also need an MC number or Motor Carrier Number in addition to your DOT number.

Plus, you must have your insurance company file your insurance with the FMCSA, referred to as a BMC-91X or federal liability filing.

Protect Your Customers

If your customers discover that you do not have dump truck insurance when operating your company, they will choose not to do business with you. In the same way that insurance for dump trucks protects the owner and operator, it also protects your customers too.

Should a prospect or customer find out you don’t have insurance, your business will lose creditability and it will damage your brand. You can incur negative reviews.

According to recent statistics, 95% of consumers say they read reviews before they buy something. In fact, Yelp contains more than 224 million cumulative reviews.

Further, Podium reveals that 58% of consumers admit they would pay more if it means supporting a business that has an excellent review.

How Much is a Dump Truck Insurance Typically?

Per each dump truck, it can cost roughly $500 to $1,000 per month. Premiums are based on several factors, like the ones we just mentioned. Some other factors include:

• Number of trucks needing insurance
• Types of trucks
• Your location
• Your hauling radius
• What the dump truck is hauling
• Where the dump truck is being driven (if you are crossing state lines)
• The driving records and experience of the drivers
• Sometimes credit history
• Sometimes the length of time in business

A competitive rate can mean that the dump truck company has been in business for two years, has good safety scores, experienced drivers, and a good loss of history.

However, if you are new to the dump truck business, carry inexperienced drivers, or have losses, then you will likely have a higher rate.

Ways to Save

All business savvy professionals look for ways to save money and reduce spending. Here are some ways to lower the rate of your dump truck insurance.

Keep Your Driving Record Clean

Businesses that are committed to safety want to avoid accidents generally. Safe business practices will help you get lower rates for insurance for dump trucks.

Insurance companies dislike risk, so if you can emphasize dump truck safety and keeping a clean loss history, you will reap the rewards of a lower rate.

Discounts

Insurance companies will often offer an array of discounts. Ask them upfront what kind of discounts they offer. Every bit will help you save, so if you can find a good discount, take it.

Raise Your Deductible

A deductible is a dollar amount you agree with the insurance company that you will pay should you have a claim. The dump truck insurance company will take care of the rest up to the limits that are outlined in the policy.

Low deductibles are fantastic, except they can cost more in premium. If you pick a higher deductible plan, you might lower your rate of insurance. Keep in mind that the deductible you choose should be the amount that you are financially comfortable with.

If you decide you are okay with a higher deductible, see if it will lower your premium. It is worth researching.

Pay in Full

Many insurance companies will reward you when you can pay in full versus having to make installment payments. This saves money on the premium overall. This is yet another item that is worth inquiring about to reduce the cost of your dump truck insurance.

Trusted Since 1957

With Hummel Group, we have built our business on relationships. That is because we pride ourselves on always doing the right thing, especially for our clients.

Our culture is about learning, growing, adjusting, and repeating. With every cycle, we build trust. This is because we commit to customers like you.

Protect your assets without overpaying on insurance premiums. We can help you.

To learn more about dump truck insurance and get a quick, simple quote, do not wait. We have you covered! Contact us today.