Trapped: Insurance's Impact on HOAs
“If you go on the record, stating there’s an issue with the building in court documents... you’ll have a hard time getting affordable coverage.”
Fires, Hurricanes, and the tragic collapse of Champlain Towers South have caused more financial strain on HOA communities when it comes to insurance coverage. Because of that, ensuring proper maintenance of your community has become increasingly crucial, especially with the current challenges in obtaining affordable HOA insurance. We have consistently emphasized the significance of ongoing preventive maintenance for your common area elements. By doing so, you not only ensure their longevity and the safety of your residents but also create substantial cost savings by decreasing life cycle costs. With insurance premiums skyrocketing nationwide, these proactive measures are one way you can help keep your insurance costs down significantly.
To illustrate the impact of insurance costs on communities, we have linked to some eye-opening articles below. Some communities are facing exorbitant increased expenses due to skyrocketing insurance premiums. Interestingly, we've observed that communities dealing with construction defects often face challenges when seeking insurance coverage. Insurance carriers tend to avoid such communities or increase their premiums substantially, making it unaffordable for residents.
While the resolution of this issue may take time due to litigation and legislation complexities, there is one effective step you can take to protect your community: prioritize inspections and maintenance. By focusing on consistent upkeep and preventive measures, you increase the likelihood of keeping insurance costs manageable and ensuring a safer, well-maintained environment for everyone.
We welcome your thoughts on this situation as I believe this will be one of the larger issues for our industry going forward!
Florida Condo Association’s property insurance spiked nearly 1,000%
