The Hidden Cost of "We'll Fix It Next Year"

By: Cory Neubauer, CIRMS | NEXTIER Insurance Services, Inc.

It is one of the most common phrases heard in HOA board meetings:

“We’ll fix it next year.”

Sometimes that decision is made because the reserve budget is tight. Sometimes the board is trying to avoid raising assessments. Sometimes the repair does not appear urgent. And sometimes, after months of competing priorities, the issue simply gets pushed into the next budget cycle.

On the surface, delaying a repair can feel like a practical financial decision.

But in today’s environment, waiting can be expensive.

Across many HOA communities, small maintenance issues are turning into larger financial events. A minor leak becomes a multi-unit water loss. A deteriorating roof leads to repeated interior damage. A drainage issue creates recurring moisture problems. An aging plumbing system causes multiple claims over time.

That is the hidden cost of “we’ll fix it next year.”

The Repair Is Usually Cheaper Before the Damage Happens

Most maintenance problems do not become expensive all at once. They get worse gradually.

A roof leak may start with a stain on a ceiling. A plumbing issue may begin with a small drip. A balcony issue may show early signs of deterioration. A drainage problem may only appear during heavier rain.

At that stage, the repair may still be manageable.

But when the issue is delayed, the scope can change quickly. Water travels. Materials deteriorate. Adjacent areas become affected. Emergency response costs increase. And once interior units are impacted, the situation can involve homeowners, tenants, property managers, contractors, adjusters, and insurance carriers.

What could have been a planned repair may become a community-wide financial problem.

For HOA boards, this is the key issue: delaying a repair does not always eliminate the cost. It often just changes when the cost arrives, how large it becomes, and how disruptive it is to the community.

Small Decisions Can Create Big Claims

Many insurance claims begin as maintenance issues.

A slow plumbing leak that was not addressed can lead to damage in multiple units. A roof issue that was pushed off for another season can result in repeated water intrusion. Poor drainage can create moisture damage, mold concerns, or structural problems. Deferred waterproofing can expose the association to both property damage and liability concerns.

By the time a claim is filed, the original issue may no longer be the only problem.

Now the association may be dealing with demolition, dry-out, reconstruction, homeowner displacement, loss assessment questions, deductible allocation, and board communication. Depending on the deductible, the association may still be responsible for a large portion of the loss before insurance responds.

Boards may assume that a large loss will simply become an insurance claim. But with today’s higher deductibles, exclusions, limitations, and claim scrutiny, the association may absorb much more of the cost than expected.

A delayed $5,000 or $10,000 repair can become a much larger expense once damage spreads.

The Budget Impact Does Not Stop with the Claim

The cost of waiting is not limited to the immediate repair.

A delayed maintenance issue can create emergency repair costs that were not included in the annual budget. It can force the board to use reserves for an unplanned expense. It can increase homeowner frustration if the issue affects multiple units or common areas. It can create repeated claims that make the association look riskier to insurance carriers. It can also make the next renewal more difficult.

This is why boards need to view maintenance delays as more than a construction or vendor issue. They are financial decisions. They are homeowner communication decisions. And increasingly, they are insurance decisions.

The association may save money in the current month or current fiscal year, but the long-term cost can be much higher.

Claim Frequency Matters

Insurance carriers do not only look at the size of a single claim. They also look at patterns.

If an association has repeated water damage claims, recurring roof leaks, ongoing plumbing issues, or multiple losses tied to similar conditions, that history can raise concerns during renewal. Even when each individual claim seems explainable, the overall pattern may suggest that the property has unresolved maintenance problems.

That can affect how the account is viewed by underwriters.

Carriers may ask more questions. They may request inspection reports. They may want proof that corrective action has been completed. They may increase deductibles, limit coverage, change terms, or decide they no longer want to insure the risk.

This is where a board’s maintenance decisions can follow the association into the insurance renewal process.

One delayed repair may not create a major problem. But a pattern of delayed repairs, recurring losses, and limited documentation can become much harder to explain.

Waiting Too Long Can Limit the Board’s Options

Boards often delay repairs because they are trying to protect homeowners from increased costs.

That goal is understandable.

No board wants to raise dues unnecessarily. No manager wants to deliver difficult financial news. No homeowner wants to hear that another project needs funding.

But when a repair is handled early, the association may have more options. The project can be planned, bid, scheduled, and funded in a more controlled way. When the issue becomes urgent, those options narrow. Emergency work is usually more expensive. The timeline becomes compressed. The board may have fewer vendor choices. The association may have to act before the next budget cycle.

This is one of the most important messages for HOA communities: avoiding a repair today does not always avoid the cost. It may simply turn a planned expense into an urgent one.

Documentation Can Help Protect the Association

When boards do take action, documentation matters.

Meeting minutes, inspection reports, maintenance logs, repair proposals, completed workorders, photographs, and vendor recommendations all help show that the association is actively managing the property.

This documentation helps future boards understand what was done and why. It helps management track recurring problems. It helps homeowners see that the board is acting responsibly. It also helps insurance brokers and carriers understand the association’s risk management efforts.

No property is perfect. Insurance carriers understand that buildings age and repairs are needed. The issue is whether the association is identifying problems, addressing them, and documenting the process.

A Better Way to Think About Maintenance

The question for boards should not be, “Can we push this off another year?”

A better question is, “What happens if this gets worse before we fix it?”

That question changes the conversation.

It encourages the board to consider the full cost of delay, not just the current repair estimate. It brings claim exposure, deductible responsibility, homeowner disruption, reserve funding, and renewal consequences into the discussion.

It also helps boards prioritize repairs based on risk, not just cost.

Some projects can reasonably wait. Others should not. Issues involving water intrusion, life safety, structural components, balconies, roofs, plumbing, drainage, electrical systems, and repeated homeowner damage should be evaluated carefully before being deferred.

In many cases, the cheapest time to fix the problem is before it becomes a claim.

The Bottom Line for HOA Boards

“We’ll fix it next year” may sound like a budget strategy, but it can become a much larger financial risk.

A small repair delay can lead to a major claim. A major claim can lead to a large deductible. A large deductible can create budget pressure. Repeated claims can lead to a more difficult insurance renewal.

For HOA boards, the goal is not to repair everything immediately or spend money without careful planning. The goal is to understand which delays create real risk for the community.

In today’s insurance environment, maintenance decisions should be made with the full financial picture in mind.

The associations that identify problems early, act before damage spreads, and document their decisions will be in a stronger position to protect their homeowners, their budget, and their insurance options.

Sometimes the most expensive repair is the one the board decided to postpone.

Click here to learn more or contact Cory Neubauer directly at coryneubauer@nxtins.com.