06/17/23 – Before October 1st, The Vaux Association will need to renew its insurance for next year.
The Board of Directors cannot control most of the costs – they are what they are, and they are going up. We rely mostly on the expert guidance of our broker, ABI, and our own judgment.
This year, in 2023, we have been insuring The Vaux envelope for $50,000,000 against loss by earthquake. To repeat this for 2024 will cost as much as $30,000 more.
Here's something for owners to think about: there is no consensus on best practice for earthquake coverage among Portland condos. Some insure with extreme caution, others barely bother. We're in the middle.
An alternative: to save some money next year and keep our owner monthly fees a bit lower, instead of insuring again at the current $50,000,000 at higher cost, insure at $25,000,000 and save something like $30,000.
No one can predict the future, and no one can calculate probable damage that might occur in the event of an earthquake, but:
• If we judge the risk of earthquake damage low, insure to save the money.
• If we judge the risk of earthquake damage high, then maybe we pay.
More insurance, higher dues. Less insurance, lower dues.
These decisions will be discussed at forthcoming Board meetings. We strongly suggest you attend.
Owners, what do you think? Comment here below, please . . .