Quite recently two of the largest residential property insurance companies announced major cutbacks in California. State Farm announced it had stopped accepting applications for any California insurance policies, and Allstate announced it was “pausing” from any issuing new homeowners insurance and HOA insurance policies to protect existing customers. Many HOAs are now experiencing skyrocketing property […]
Brace yourself Floridians, the promised insurance relief isn’t expected soon and could get worse
The Florida insurance industry is in a state of crisis. Over the past year and a half, 15 Florida insurers placed moratoriums on writing new business in most counties and seven were declared insolvent. Read the article………………………..
Understanding Condo and HOA Insurance: Coverage Types and Key Considerations for Community Associations
Condominium, homeowner (HOA), and townhome associations carry insurance coverage designed to protect the common areas and shared spaces of the community. While individual homeowners are responsible for purchasing their own insurance to protect their personal property and dwelling, the association’s insurance policy may cover Read the article………………………..
Are you covered?? (AZ)
Insurance policies can be convoluted and confusing. Diligently reviewing your community association’s insurance policy to ensure that coverage (1) meets the minimum requirements imposed by the Governing Documents and/or applicable Arizona law (specifically as to Condominiums); and (2) meets the Board’s expectations, is vital. Read the article………………………..
Lakeland Homeowners’ Insurance Woes Mount As Another Carrier Pulls Out of Florida
Farmers Insurance Group announced Tuesday that it is pulling out of Florida, becoming the 15th company to stop insuring homes in the state in the past 18 months — on top of seven companies that have been declared insolvent in the same timeframe. Read the article………………………..
After State Farm’s and Allstate’s Exits, Farmers Insurance Sets Limits in California
In May, Zachary Erbe received some alarming news: Farmers Insurance would not renew his building’s insurance policy, which expired in August. The reason? The three-unit residential building located near Alamo Square was constructed before 1925. As chairman of the homeowner’s association, Erbe jumped into action and sought new coverage. He thought he had another policy […]
HOA Homefront: Tips for ‘bare walls’ property insurance (CA)
Quite recently two of the largest residential property insurance companies announced major cutbacks in California. State Farm announced it had stopped accepting applications for any California insurance policies, and Allstate announced it was “pausing” any new homeowners insurance and HOA insurance policies to protect existing customers. Read the article………………………..
Loss of homeowner fire insurance kindles debate over fairness (CA)
There are 115 insurers still writing new policies in California, and there’s also the California FAIR Plan Association, which was established to meet the needs of the state’s homeowners unable to find insurance in the traditional marketplace. FAIR provides up to $3 million in coverage per HOA complex, according to Michael Soller, deputy insurance commissioner […]
How to Handle the Spike in Insurance Premiums (CA)
California is no stranger to wildfires, and as a result, insurance companies have become hesitant to write policies for communities subject to damage caused by them. Also, the Department of Insurance regulates admitted carriers and limits insurance premium amounts allowed. Read the article………………………..
Farmers Insurance Halts Sale of Homeowners Policies in Florida
In early June, Farmers Insurance Group announced it would cease issuing new homeowners policies in Florida for the foreseeable future. A Farmer’s spokesperson explained the decision, stating, “[w]ith catastrophe costs at historically high levels and reconstruction costs continuing to climb, we implemented a pause on writing new homeowners policies to more effectively manage our risk […]
‘We’re in a perfect storm.’ Insurers flee parts of America amid the climate crisis and rising costs to rebuild.
The droves of Americans moving out west and to Gulf Coast states are putting themselves at risk of becoming uninsurable. More extreme wildfires, hurricanes, and other climate-fueled disasters combined with the rising costs of building materials are straining property-insurance providers in California, Colorado, Florida, Louisiana, and Texas — with some companies pulling out of some […]
‘A kick in the teeth:’ Some Hilton Head condo insurance policies soar 500% (SC)
Anything in life that costs 500% more this year than last year is unthinkable. But for when it comes to condo insurance in Beaufort County, it’s a reality. This year, Hilton Head Island Sea Side Villas owner Jared Shope is paying $4,000 in special assessments on top of the condo’s $4,860 yearly regime fee. Read […]
Florida Judge Slams SFR Restoration Firm for Misrepresentation, Fraud in Tower Hill Case
SFR Services, a Florida restoration firm made famous by its volume of claims litigation and its charges that United Property & Casualty Insurance Co. had instructed desk adjusters to alter their estimates, now finds itself in some legal trouble of its own Read the article………………………..
Catastrophic Losses and Insurance Costs: Navigating the Choppy Waters of Community Association Coverage
This article offers tips for community associations to manage rising insurance costs and mitigate losses after major disasters. The increasing cost of insurance premiums is due to catastrophic losses and the need for more reinsurance. To keep costs down, community associations should focus on risk management, regular maintenance, and work with experienced insurance brokers. Read […]
Not Just in Fla.: Insurers Pull Back Nationwide
Across the United States, insurance companies are reducing their exposure to homeowners property insurance in areas at risk of flood, storms and wildfires. State Farm and Allstate recently pulled back from California’s homeowners’ insurance market, and AIG announced it would reduce coverage for affluent homeowners in ZIP Codes that face a high risk of flooding […]
Why D&O?! (CO)
Putting it in today’s terms, one of my biggest “cringe” moments being an HOA insurance specialist is when a Board of Directors decides they do not wish to procure Directors and Officers Liability Insurance (D&O). In my mind, (and I’m sure many of you share this same opinion), this coverage is absolutely necessary to protect […]
New law prohibits insurance companies from altering claim estimates (FL)
The start of hurricane season is here, but many Southwest Floridians are still fighting their insurance companies about their Hurricane Ian claims more than eight months later. The Insurer Accountability Act aims to bring more balance between the consumer and the insurance industry. Read the article………………………..
Florida Judge Slams SFR Contractor for Misrepresentation, Fraud in Tower Hill Case
SFR Services, a Florida restoration firm made famous by its volume of claims litigation and its charges that United Property & Casualty Insurance Co. had instructed desk adjusters to alter their estimates, now finds itself in some legal trouble of its own. Read the article………………………..
Property Insurance Burns Through Homeowners’ Budgets (CA)
Back in December, she was notified by her Homeowners Association that they were having a hard time getting coverage due to wildfire risk. They found one policy for partial coverage with a price tag of almost $320,000 for the complex. A 600% jump from the previous year…… A second notice indicated that her HOA had […]
What is HOA insurance?
Homeowners associations (HOAs) are common and can have many perks, including shared community parks, regulations to help deter nuisances, and access to amenities like neighborhood pools or gyms. HOAs do usually assess fees to members. While fees are used to cover a variety of costs, one big one is HOA insurance. Read the article………………………..
As climate risks rise, flood insurance costs stun US homeowners
Homeowner Tommy Becnel has never had a flood claim on his house in the hurricane-prone U.S. state of Louisiana, but his annual insurance premium is still set to rise 10-fold, to nearly $7,000, in the years ahead. Read the article………………………..
More scrutiny over HOA insurance issue (CA)
The cost of homeowners association fire insurance continues to climb and is difficult to secure in wildland fire areas. The issue, which is threatening some residents’ homeownership, has garnered the attention of local elected leaders, who recently met with HOA representatives in search of help. Read the article………………………..
Board Brief: Insurance Coverage for Your Condo or Community Association
As a board member, you understand the importance of protecting your property and maintaining its value. One critical component of this protection is insurance coverage. Condo and community association insurance is designed to cover claims or losses that can impact your community, from property damage and liability claims to natural disasters and other unexpected events. […]
Requiring Workers’ Compensation (FL)
It is surprising to hear from so many community association board members and managers looking to protect their community association that, when asked if they require all vendors to have workers’ compensation insurance as a required term in all of their contracts, it can be like looking at a deer in the headlights. Read the […]
Insurance Premiums Skyrocket – 90% of Multifamily Communities Report Paying More – What’s to Blame?
Inflation has hit the insurance building insurance industry in a big way. And according to a recent survey conducted by the Foundation for Community Association Research (FCAR), skyrocketing premiums are putting serious financial pressure on condo and homeowners associations nationwide. Read the article………………………..
Fla. and La. must borrow millions to pay insurance claims
The Gulf Coast insurance crisis has hit a new low as two state-chartered insurance associations are being forced to borrow hundreds of millions of dollars for the first time in three decades to pay the hurricane claims of insolvent insurers. Borrowing in Florida and Louisiana could reach a combined $1.35 billion and will be repaid […]
HOAs Report Big Challenges with Rising Insurance Premiums
Insurance premiums have been skyrocketing across the country in recent years, causing many community associations to face significant challenges in obtaining affordable insurance coverage. Read the article………………………..
Insurance coverage: Communities report significant challenges with rising premiums
Insurance premiums have been skyrocketing across the country in recent years, causing many community associations to face significant challenges in obtaining affordable insurance coverage. Read the article………………………..
Delay Upon Delay: Why 24 Woodridge Families Are Still Waiting to Return Home After 2021 Tornado (IL)
Two dozen families are still homeless after a tornado tore through their west-suburban Woodridge community back on June 20, 2021, and nearly two years later, they still have no clear timeline for when they will be allowed to move back in. Some of the Woodridge Country Club #5 owners blame their home-owners association (HOA) and […]
What Can Your HOA Do With The Rising HOA Insurance Rates
Every homeowners association should make sure it has sufficient insurance coverage. But, with rising HOA insurance rates, many are finding it difficult to keep up without causing significant financial strain to their bank accounts. Read the article………………………..
Not My Circus, Not My Monkeys! Or… Is it? Condominium Casualty Losses and Insurance Issues (VA)
The following scenario is all too familiar for many who live in or manage a condominium: a pipe bursts in a unit, water is everywhere, panic ensues, with all those affected looking to the association to both stop the water leak and make the repairs. The initial instinct on the part of the association may […]
Risk Management Considerations for Condo Association Boards
The condo association takes on a special level of responsibility because of the unique form of ownership that is the condominium. To make sure we are all on the same footing — a condominium is a form of ownership where a person (in the broadest possible sense) purchases a unit within a building Read the […]
Tips For Association Leaders Purchasing Fidelity, Employee Dishonesty, and Crime Insurance for Condominium Associations
As an attorney who has represented hundreds of condominium associations following losses, I understand the importance of having the right insurance policies in place to protect your association’s assets and financial well-being. Fidelity, Employee Dishonesty, and Crime Insurance are crucial components of a comprehensive insurance plan for condominium associations. Read the article………………………..
Insurance denies Club Valencia’s claims for fires that displaced half the property, causing delayed repairs (CO)
About half of all the residents at the Club Valencia condominium complex in Arapahoe County are still waiting to return home, after two fires in three months made roughly 160 units uninhabitable. Read the article………………………..
5 Uncommon HOA Insurance Updates To Protect Your Community From The Unexpected
Is your HOA insurance update coming up soon? While you might have the usual coverage, it is important to evaluate your community’s exposure to more unusual risks. Read the article………………………..
SIX MONTHS AFTER IAN: A community struggles to hold on during battles with insurance (FL)
Fox 4 Investigates pulled the latest numbers from the Florida Office of Insurance Regulation which show of the nearly 500,000 residential property claims filed since Ian passed, less than half of the claims have been paid out. Read the article………………………..
I am a Volunteer, so I am Protected, Right?: Understanding Director and Officer Liability Insurance for Community Associations
Community associations (“Associations”) act through their board members and officers, who are volunteers and are generally willing to serve because they care about their communities. Notwithstanding their status as volunteers of nonprofit corporations, board members can, and often are, targets of member lawsuits Read the article………………………..
Rate shock: Skyrocketing insurance premiums straining community associations
Community associations in California are staring at skyrocketing insurance premiums. Some are facing increases of as much as hundreds of thousands of dollars per year. Community finances are being strained and, in some cases, it’s become impossible for new buyers to secure mortgage lending. Read the article………………………..
Insurer Accused of Fraud and Bad Faith in Homeowners Association Fire Coverage Dispute (CA)
In a recent development, Village Gardens Homeowners Association (HOA) is fighting to keep its counterclaims of fraud and bad faith alive against Great American Alliance Insurance Co. in a California federal court. The case revolves around the insurer’s refusal to cover the HOA in litigation concerning a couple who sustained serious burns in a house […]
Insuring Wooden-Frame Co-ops and Condos Is More Expensive Than Ever (NY)
It’s no secret that we’re in what’s known as a hard insurance market, a time when insurance carriers deal with a squeeze on their profits by raising premiums, lowering coverage limits and adding exclusions to their policies. But the boards of many co-ops, condos and homeowners associations, especially in the outer boroughs and suburbs, are […]
Rate shock: Skyrocketing insurance premiums straining community associations (CA)
Community associations in California are staring at skyrocketing insurance premiums. Some are facing increases of as much as hundreds of thousands of dollars per year. Community finances are being strained and, in some cases, it’s become impossible for new buyers to secure mortgage lending. Read the article………………………..
Florida lawmakers eye expanding property insurance reforms to all types of insurance
A homeowner in Florida who opens their annual renewal to see their premium has increased or finds out their carrier has suddenly dropped them may not have noticed anything different despite reforms. Read the article………………………..
Condo’s & HOA’s Confront Rising Insurance Premiums, Maintenance Fees & Operating Costs
Residents living in condominiums, homeowners associations, and housing cooperatives could be facing increased assessments due to growing operating costs and expenses. According to a new survey by the Foundation for Community Association Research, 91% of community association managers, professionals, and homeowners surveyed report they are seeing unexpected increases in expenses due to rising costs and […]
HOAs in danger of losing coverage (CA)
The 650-unit community of Hidden Canyon was dropped by Farmers Insurance last year, forcing the homeowners association to scramble for an alternative. The end result: less coverage at a much higher cost. HOAs in high-fire-risk areas around the state are dealing with the same problem. Read the article………………………..
HOA Fidelity Bonds: Why Your Homeowners Association Needs Them
HOA fidelity bonds are critical to the operations of homeowners associations. But, what are these bonds anyway? And what do they cover? A fidelity bond is a form of insurance that protects homeowners associations from unanticipated financial losses such as fraud or theft. Other names for fidelity bonds include crime insurance or fidelity insurance. Read […]
California senate committee addresses condo insurance crisis
The solution to the wildfire insurance crisis in California may be higher insurance rates for all homeowners – that’s what industry experts had to say while testifying last week in front of the California Senate Committee on Insurance. Read the article………………………..
Insurance—What Is Going On Right Now?!? (CO)
If you haven’t looked at your insurance in the past year, you may be saying what?!? when you do. While it has always been a necessary evil, it is something that both individuals and associations alike must obtain, and never before has it been so expensive or near impossible to secure. Insurance provides protection for […]
How to Choose the Best Condo Association Insurance for Your Community (FL)
Condo insurance can be one of the most important yet confusing aspects of managing your Tampa-based condo association. It can be time-consuming and frustrating to ensure all your association’s needs are met, and a policy is chosen that both provides sufficient coverage and remains within budget. Read the article………………………..
Insurance is a Privilege Not a Right (CA)
As you (hopefully) know, certain types of insurance are required by state statute in California, as well as in most other states. So, when someone stated “Insurance is a privilege not a right,” there was an audible gasp from most attendees in the room. Read the article………………………..