The effects of climate change are becoming more pronounced, both globally and domestically. In the U.S., the consequences of changing weather patterns and climate-related disasters are impacting various aspects of the economy, with homeowners in particular feeling the cost in a very direct way. Read the article…………………………….
Hawaii’s Insurance Crisis as Premiums Nearly Quadruple
Sue Savio, president and owner of Insurance Associates and former president of the Hawaii Independent Insurance Agents Association, told Insurance Business America that insurance costs for condominiums have risen by 100 percent to 1,000 percent in certain areas. Cj Paet, vice president of operations for Cadmus Properties, told local news website KITV 4 Island News […]
Beware of Claims Deadlines! Florida Condominiums Have Supplemental and Reopened Claims Statute Deadlines
Florida is the only state to address and provide a statutory definition for a “re-opened claim” or a “supplemental claim.” Florida’s law is not a consumer protection law. Instead, it is an insurance company protection law. The current edition of Florida’s Supplemental and Reopened claims law Read the article…………………………….
Maximizing Insurance Savings: A guide to maintenance, replacement, and risk mitigation in community associations
For community associations, managing insurance costs can be a challenging but crucial task. Focusing on maintenance, replacement, and risk mitigation can significantly impact insurance premiums especially when dealing with separate carriers for property and general liability insurance. Below, we explore strategies for community associations to proactively maintain and replace key elements, ultimately reducing the risk […]
Supplemental Claims Don’t Need to Include Damage Estimates, Fed Appeals Court Says (FL)
A federal appeals court has, at least for now, put an end to lingering questions about some property insurance claims litigation: The insured does not need to submit a competing damage estimate when filing a supplemental claim if the policy does not require it. Read the article…………………………….
Insurance Companies Reportedly Using Drones To Deny Insurance Claims
A new report from The Wall Street Journal revealed that some insurance companies have been using footage captured by drones to deny homeowners insurance coverage. Some homeowners say that the images used to justify the cancellation of their coverage are inaccurate. Read the article…………………………….
Advice for Community Associations Facing Rising Insurance Costs (FL)
Exorbitant year-over-year insurance premium increases have been difficult to bear for many Florida condominium communities and their unit owners. Past hurricanes and the horrific tragedy of the collapse in Surfside have been cited as some of the causes that have led to skyrocketing premiums for condo communities, and many unit owners are having difficulty keeping […]
Advice for Community Associations Facing Rising Insurance Costs (FL)
Exorbitant year-over-year insurance premium increases have been difficult to bear for many Florida condominium communities and their unit owners. Past hurricanes and the horrific tragedy of the collapse in Surfside have been cited as some of the causes that have led to skyrocketing premiums for condo communities, and many unit owners are having difficulty keeping […]
The basics of condo insurance in Florida
Many condominium owners in Florida might wonder about the necessity of availing insurance for their homes, especially as most condo associations already have a master policy in place. Additionally, state law does not mandate homeowners to purchase condo insurance. What does condo insurance cover, and how is it different from the homeowners association’s master policy? […]
Maximizing Insurance Savings: A guide to maintenance, replacement, and risk mitigation in community associations (CO)
For community associations, managing insurance costs can be a challenging but crucial task. Focusing on maintenance, replacement, and risk mitigation can significantly impact insurance premiums especially when dealing with separate carriers for property and general liability insurance. Below, we explore strategies for community associations to proactively maintain and replace key elements, ultimately reducing the risk […]
Does a Condominium Have to Put Insurance in the Annual Budget? (FL)
I have been asked on a few occasions whether an association has to put insurance in the annual budget or whether it can just wait to determine the amount of the insurance, and specially assess for the same (without a line-item in the annual budget). Insurance costs have doubled, tripled or even quadrupled in the […]
Treasurer’s Payment Mistake Requires Defense Coverage Under Property Association’s D&O Policy
A federal court recently ruled that a carrier must defend its policyholder against a claim involving the treasurer’s erroneous payment to a scammer. The ruling shows that a “wrongful act” under a D&O policy need not be an egregious act of wrongdoing, that coverage may hinge on whether extrinsic evidence can establish coverage, and that […]
Federal judge finds home insurers can be sued for discriminatory risk assessment
A federal judge in Illinois ruled in favor of the U.S. Department of Housing and Urban Development on Tuesday, concluding a 10-year-old case brought against it by a major insurance industry lobbyist group. The Property Casualty Insurers Association of America first filed the suit against the Housing Department in November 2013, asking the court to […]
Maximizing Insurance Savings: A guide to maintenance, replacement, and risk mitigation in community associations
For community associations, managing insurance costs can be a challenging but crucial task. Focusing on maintenance, replacement, and risk mitigation can significantly impact insurance premiums especially when dealing with separate carriers for property and general liability insurance. Below, we explore strategies for community associations to proactively maintain and replace key elements, ultimately reducing the risk […]
Addressing the Hard Insurance Market: Strategies for Boards (NY)
Rising insurance premiums and dwindling coverage have co-op and condo boards at the mercy of what’s called a “hard insurance market.” This is largely because insurers’ are trying to offset billion-dollar losses with higher premiums, lower coverage and exclusions. In the face of escalating costs, boards are forced to explore different ways to reduce liability […]
House Speaker Saiki warns looming condo insurance crisis could snowball (HI)
Condo owners are facing soaring insurance premiums as companies across the country cancel coverage due to growing risks from climate change. That was the topic of a recent town hall meeting on O?ahu hosted by state lawmakers whose districts largely comprise condo dwellers. Read the article…………………………….
Farmers condo insurance case explores exclusion clauses (WA)
The Gardens Condominium v. Farmers Insurance Exchange case revolves around an all-risk insurance policy issued by Farmers Insurance Exchange to The Gardens Condominium. The policy was designed to cover any direct physical loss unless caused by an excluded event. Notably, the policy included an exclusion for faulty, inadequate, or defective workmanship but also contained a […]
Allstate’s Florida Company Defends 54% Condo Rate Hike. Blames Reinsurance, Hurricane, Rapid Growth
When Allstate’s Florida unit, Castle Key Indemnity Co., entered the surging condominium insurance market in 2020, it looked like it had made a smart bet: Within two years, the carrier had added no fewer than 123,000 policies. Then came reinsurance price increases and $56 million in hurricane losses. Read the article…………………………….
State lawmakers want to study HOA insurance market (CO)
When a townhome complex in Louisville lost five buildings in the 2021 Marshall Fire, the homeowners board president expected the insurance would go up. But not this much. The Wildflower townhome community’s annual insurance premium went from $65,000 in June 2022 to $437,000 in June 2023, according to board president Mark Appelfeller. He said the […]
Sky-High Condo Association Insurance Rates Upend Lives, Rattle Industries
In a dramatic turn of events that’s sending shockwaves through homeowner communities, insurance rates for condo associations have surged drastically. Across the nation, residents and HOA’s are overwhelmed with increases ranging from 50% to over 500%, with states like Hawaii and Florida facing staggering hikes due to their vulnerability to hurricanes. Read the article…………………………….
Catastrophes are driving up condo insurance rates in Hawaii and nationwide
A ripple effect across the country is showing up in the condo fees for nearly 200,000 Hawaii residents, and experts say catastrophes are driving up their insurance rates. Rising insurance premiums have a direct impact on the fees paid by owners to condo associations. So far, there’s no easy solution. Read the article…………………………….
Facing Property Insurance Challenges (CO)
Skyrocketing premiums for property insurance coverage for many common interest communities in Colorado, particularly condominium projects, are becoming a financial nightmare for those communities impacted by the premium hikes and the homeowners who live in them. In fact, the Speaker of the House in Colorado is sponsoring House Bill 24-1108 to require the Commissioner of […]
CA FAIR Plan
Many boards of directors have been asking about the California FAIR Plan (CFP) and wanting quotes. For communities that are experiencing difficulties in obtaining property insurance, it may sound like the perfect solution, but only because details important to community associations are often left out when the media and the CA Department of Insurance talk […]
Condo insurance woes strike Hawaii
As Hawaii’s Governor wages war on Maui short term rental unit investors, there’s an insurance sting in the tail for condo owners and would-be buyers across the state as it wrestles with property insurance challenges. Insurance costs for condo complexes have skyrocketed by anything from 100% to 1,000% since the devastating August wildfires, Read the […]
Whe Do We Have to Submit an Insurance Claim?
One of the more confusing concepts in HOA world is insurance and knowing when to submit a claim. All too often associations get in trouble for failing to submit claims and requiring an owner to pay for damages out of pocket instead of using insurance proceeds. In this article, we will discuss how to determine […]
Understanding the options: 7 steps to consider as communities face skyrocketing insurance premiums
Community association legal experts and insurance professionals shared their insights and solutions on several topics changing the way community associations across the country operate at CAI’s Community Association Law Seminar in Las Vegas in February. Skyrocketing insurance premiums were a major focus. Read the article…………………………….
Understanding the options: 7 steps to consider as communities face skyrocketing insurance premiums
Community association legal experts and insurance professionals shared their insights and solutions on several topics changing the way community associations across the country operate at CAI’s Community Association Law Seminar in Las Vegas in February. Skyrocketing insurance premiums were a major focus. Read the article…………………………….
New roof or roof coating? Insurance companies enact new restrictions on roof coverings (FL)
It’s an option many homeowners make, opting to make improvements to their roof without a full roof replacement. But one condo association said their route of getting a silicone coating instead of a new roof has them at risk of being dropped. Barbara Schmal is the treasure of the Water’s Edge Condo Association in Largo. […]
HOA insurance premiums skyrocket across Colorado, driving up condo dues
To say Rosalie Hayes was stunned when she opened the letter describing a dues increase at her Arvada condo complex this year would be an understatement. “When I opened this letter, it was just like you could have knocked me over with a feather,” she said. “It was a shock.” Read the article…………………………….
Castle Key (Allstate) Defends 53.5% Condo Rate Hike, Blames Reinsurance, Ian, Rapid Growth (FL)
When Allstate’s Florida unit, Castle Key Indemnity Co., entered the surging condominium insurance market in 2020, it looked like it had made a smart bet: Within two years, the carrier had added no fewer than 123,000 policies. Then came reinsurance price increases and $56 million in hurricane losses. Read the article…………………………….
Florida condo policies could exit Citizens Property Insurance Corp.
Florida regulators last week approved a plan that could lead to condominium-association policies leaving the state’s Citizens Property Insurance Corp. Read the article…………………………….
Waukesha condemned condo owners asking state insurance commissioner for help (WI)
Demolition of the Horizon West Condominium building is ongoing two years after it was evacuated over worries it could collapse because of structural issues. Even though the building is stripped down to its steel beams, the residents who used to live there are still paying their mortgages. Read the article…………………………….
Condo group sues State Farm for water damage 30 years too late: Court (WA)
A Tacoma, Washington, condominium association that sued a State Farm Insurance Co. unit for water damage filed its suit nearly 30 years too late, a federal appeals court ruled Monday, affirming a lower court ruling. Read the article………………………………..
What is an HOA insurance policy?
Homeowners associations (HOAs) generally assess a fee to the HOA members, which is used to manage tasks like snow plowing, lawn mowing or maintaining public spaces. Some of the money collected may also go toward HOA insurance coverage. This type of policy protects the HOA community against certain liability risks or property damage. Read the […]
Illinois court asked: Are defects covered by general liability insurance?
The ruling, passed down from the state’s supreme court, could affect which issues contractors choose to litigate with insurers across the country. Read the article…………………..
Could FL condo roof insurance reform become a reality with proposed bipartisan bill?
With the costs of property insurance continuing to drive up the cost of living in Florida, South Florida State Rep. Hillary Cassel, who represents Broward County, says the state needs leadership to think “outside the box” and not assume that the private marketplace is always going to be there for property owners. Read the […]
HOA Homefront: Reader Questions – Who Insures What in the Planned Development? (CA)
Kelly: Can a Planned Unit Development purchase “Bare Walls” fire insurance for residences since the HOA does not own them? Read the article………………………….
S. Carolina Insurer’s Bad Faith Causes $27M Loss from Policies with $2.5M Limit
A panel of the South Carolina Court of Appeals on Wednesday affirmed a trial court order requiring Pennsylvania National Mutual Casualty Insurance Co. to pay an award totaling $27,339,535.46 to developer Portrait Homes and the Persimmon Hill Homeowner’ Association, even though the policies it sold Castillo’s company provided only $2.5 million in coverage. Read the […]
Soaring Hurricane Insurance Rates Leave Hundreds of Hawai‘i Condo Buildings Under-Insured (HI)
One local insurance agent estimates that the owners associations for as many as 390 buildings have renewed their policies with less than 100% replacement coverage. Read the article…………………………….
Bipartisan lawmakers seek to cut condo insurance costs through valuation pilot program (FL)
In a bipartisan move, Florida lawmakers have introduced legislation that seeks to establish a Condominium Windstorm Pilot Program, which would provide a new insurance option for condominium associations. Read the article……………………………
Do You Really Want to Risk Not Having Insurance? (FL)
We all know what the cost of insurance is doing to our way of life. In most condominium associations, the cost of windstorm and peril insurance has tripled over the past few years, if not quintupled. And from what I am being told, there is no end in sight. God forbid another major storm hits […]
Florida Condo Associations: Dodging Floods and Drowning in Premiums?
Well, folks, another hurricane season in Florida has come and gone, leaving us with nothing but a collective sigh of relief and the looming specter of potential disaster. In the spirit of commemorating the official end of hurricane season, I urge you to take a moment to reflect on your condo association’s insurance choices. Read […]
Aging Infrastructures: Changes in Insurance Underwriting (CA)
It is no secret that the insurance industry, especially for common interest developments in California, is in crisis. After several years of wildfires and other natural disasters, carriers are not only charging higher premiums, but also revising eligibility requirements and giving greater scrutiny to insurance applications. Read the article………………………………
‘It’s just not fair’: Condo residents in Daytona Beach Shores face 500% property insurance rate hike (FL)
Residents of a Daytona Beach Shores Condominium are concerned about a massive hike in property insurance rates. Read the article……………………………
Fire-related insurance challenges to blame for high HOA fees in Colorado, says insurance division
It’s not just rural mountain communities in Colorado that have to worry about wildfire risk anymore, and insurance companies know that. The ability to live so close to nature and open spaces is a big part of why people choose to live in Douglas County. But it’s also the reason the county is in the […]
Volusia condo owners plead for legislative help as insurance rates spike (FL)
It’s been over a year since hurricanes Nicole and Ian devastated the coast of Volusia County and still, many homes and condos are being rebuilt. Now, the owners are taking a major blow again, this time by property insurance hikes. “If the insurance keeps going up, the condo market is going to collapse,” Jeff Sussman […]
Colorado homeowners left with more questions than answers about skyrocketing HOA insurance
Homeowners in Castle Rock’s Latigo neighborhood made their voices heard in a meeting over the Homeowner’s Association board’s new budget proposal. We expect to know on Monday whether the community will move forward with their latest budget proposal or if they’ll have to go back to the drawing board. Read the article……………………………
‘We do not have insurance. We have an insurance bill’: Condos hit with 563% rate increase (FL)
For Baker and many other Florida condo owners, the very concept of insurance – to ease worries during times of distress – seems lost, especially after the 2021 collapse of the Marina Grande towers in Surfside and the two-punch combo of the 2022 hurricane season: Ian and Nicole.Read the article………………………………..
Castle Rock community HOA fees skyrocket after insurance premium increases by 600% in Colorado
Homeowners in Castle Rock’s Latigo community, near Metzler Ranch, will see their Homeowner’s Association fees skyrocket in 2024 after the HOA’s insurance premium went up by 600%. The reason behind the increase comes down to high property valuations and Colorado’s extreme weather. Read the article……………………………….
Florida’s ongoing property insurance crisis leading to spikes in HOA fees
Several residents in the Baldwin Park area say their fees have doubled, increasing by nearly $400 dollars per month to an estimated $770 per month. Now, they’re learning the rate hike is a result of the state’s ongoing property insurance crisis. Read the article…………………………………..