Why getting multiple agents to quote your master policy can work against you
The Common Mistake that Condo Boards Make
When it’s time to renew your condo association’s insurance, many boards believe the smart move is to ‘get three quotes.’ But in the insurance world, that strategy can actually raise your premiums.
I’ve seen many associations get quotes from a few different agents to get the best deal. It sounds smart – it’s how people shop for auto or homeowner’s insurance. But the problem is the commercial insurance market doesn’t work that way.
If you represent a New Jersey condo association, shopping your master policy through multiple brokers can actually hurt your results — leading to fewer carrier options, higher premiums, and market confusion.
For some reason, insurance brokers don’t tell prospective clients this but I think it’s important to educate. As a homeowner’s association board member, I’ve done it too!
So how does the process work? And how can your board shop more strategically to get the best coverage at the best price.
How the Condo Association Insurance Market Really Works
Unlike person insurance, only one broker can represent your condo association to a particular carrier at a time. The industry speak calls it “blocking the market.”
Here’s what it looks like:
Once Agent A submits your association’s information to, say, Travelers, that carrier is now “blocked.”
If Agent B tries to get a quote from the same carrier, they’ll be declined because the market is already taken.
If multiple agents all contact the same carriers, the first one in wins – and the others lose access.
Instead of getting more options, your association actually ends up with fewer.
Why Getting Multiple Agents Involved Can Backfire
When boards ask multiple brokers to shop around, it causes issues.
Duplicate Submissions= Market Confusion
Carriers might receive your association’s information three different times from three different agents. This looks disorganized and can make your association appear high risk or poorly managed.
Inconsistent Data = Inaccurate results
Each agent might quote slightly different data (square footage, construction type, coverage limits, etc). This leads to inconsistent and even unusable quotes.
Blocked Markets = Limited Options
Once a carrier has been approached by one agent, it won’t release another quote through a competitor. This limits your market access before you even start negotiating.
Result: Higher Premiums and Frustration
With fewer carriers and mixed messages, the quotes you receive may not be competitive or they might not reflect your actual coverage needs.
The Smarter Way To Shop for Condo Association Master Policy and other Commercial Insurance
The better way starts with choosing ONE trusted condo association insurance specialist to represent your board.
Here’s a step by step process your association can follow:
Step 1: Gather Documentation
Before you start looking and shopping your policy, collect:
- Your current insurance policies
- Loss runs (3-5 years of claims history)
- Your governing documents (bylaws, declarations)
- Building maintenance and safety information
A complete submission helps your broker tell your community’s story and negotiate better terms.
Step 2: Interview and Select One Specialist
Chose a broker who specializes in condo and HOA insurance, not a generalist.
Ask:
- How many condo associations do you represent?
- Which insurance carriers do you work with?
- How do you help clients with claims and risk management?
A specialist understands your bylaws, master policy structure, and unique risks like flood and ordinance and law exposure.
Step 3: Define your coverage goals
Before you start shopping, align on what matters most:
- Do you want higher property limits or lower deductibles?
- Are you worried about flooding/water damage or board liability?
- How much reserve funding do you have for uninsured losses?
Knowing your priorities ensures the broker can target the right coverage – not just price.
Step 4: Let your Broker Access the Market
Your chosen broker should approach all relevant insurance carriers including regional specialists. This allows you to be represented consistently and enables him/her to negotiate the best terms.
Step 5: Compare Quotes Objectively
Don’t just look at the bottom line.
Review:
- Building and general liability limits
- Deductibles and coverage exclusions
- Flood, Directors & Officers, and equipment breakdown coverage
- Service and claims support
The lowest quote isn’t always the best value.
Evaluate the Right Insurance Broker
Your insurance partner should be more than just a salesperson – they should act as your risk management advisor.
Look for someone who:
- Understands New Jersey condo association insurance regulations and trends
- Reviews your bylaws and helps align them with your policy language
- Helps you prepare for board meetings or annual insurance reviews
- Is available year-round – not just at renewal time
The Role of a Broker of Record (BOR) Letter
If your board is unhappy with your current agent (or maybe you haven’t talked to them in years), you don’t need to start from scratch.
You can issue a Broker of Record (BOR) letter – a simple form that transfer representation to a new broker.
This allows your new specialist to step in, access the same carriers, and negotiate on your behalf.
It’s an efficient, professional way to regain control of your insurance program.
How to Get the Best Results for Your Condo Association
If you take away one thing from this article, make it this: work with ONE trusted broker, early and transparently.
To maximize results
- Start early – 90 to 120 days before renewal
- Provide complete, accurate information
- Communicate openly with your broker about goals and challenges
- Ask for proactive risk management support, not just support
When done right, this can:
- Broaden coverage
- Provide more competitive pricing
- Better service at claim time
- A stronger long-term relationship with your carrier
Partnering with a Condo Association Insurance Specialist
Shopping for your condo association’s insurance policies isn’t about playing brokers against each other. It’s about finding a specialist who can represent your community effectively.
By consolidating your marketing efforts and focusing on quality information, your board can build credibility with underwriters and secure the most competitive coverage in the market.
At Hecht Property Advisors, we special in helping New Jersey Condo Associations and Homeowner’s Associations navigate this process.
We will:
- Review your bylaws to identify coverage gaps
- Market your account to all eligible carriers
- Provide transparent comparisons and clear recommendations
- Advocate for your board at claim time
If your condo association is due for renewal, reach out for a free insurance policy review. We’ll help you shop smarter — not harder.