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…………………………………..
HOA Insurance: A Tale of Premiums Past and Strategies for the Future (CO)
Several years ago, my wife suggested, “You should run for a position on our HOA’s Board of Directors. You attend so many board meetings; you would be great at it!” Today, more than ever, I appreciate those who volunteer to serve their community as a board member. This often thankless position can demand so much […]
Hawaii Supreme Court Rules Insurers Can’t Recoup Defense Costs from Insureds
An insurer cannot seek reimbursement from its insured for the cost of defending a lawsuit after learning that no coverage was owed unless the policy says it can, the Hawaii Supreme Court ruled. Read the article……………………………….
This Sunrise condominium lost its windstorm insurance — so buyers can’t get financed (FL)
After Rich Engels’ mother died earlier this year, Engels decided to sell her condo unit in Sunrise Lakes Phase 4. He lined up a buyer, but he said the deal fell apart after the lender learned that the condo building had no wind insurance. Lenders won’t approve mortgage loans on buildings that are not insured […]
Condo Column: A Hidden Danger
About two years ago in Michigan, which becomes relevant to New Hampshire by the end of this column, there was damage to a condominium that was covered by the Association’s Master Policy. After the deductible, the check to be paid by the carrier to the Association was $40,000.00. All was going to be good. Then […]
Do Insurance Carriers Follow the Governing Documents? (CA)
Q: Why would a carrier even consider a claim for inside plumbing when our CC&R clearly indicates that inside plumbing issues and damages is the responsibility of the owner? Don’t they read the CC&R when writing the policy? Are we paying extra premium for this inside coverage? Read the Q&A…………………………..
Maintenance and Insurance-What’s the Difference and Why is it so Hard to Understand? (CO)
Understanding the difference between a maintenance obligation and an insurance obligation is a crucial part of community living. Maintenance and insurance obligations differ between associations depending on how the governing documents are drafted whether the association is classified as a condominium, townhome, or single family community. It is important that an association understand the difference […]
Insurance costs jump 40-150 percent for some OC condos, property managers say (MD)
As coastal condominium and cooperative housing associations in Ocean City renew the insurance on their buildings this year, some are seeing the price of plans more than double. Read the article………………………………
Navigating Florida’s Challenging Property Insurance Marketplace for Community Associations
The property insurance crisis in Florida is causing significant upheaval among the state’s HOAs and condominium associations. While they are paying the highest premiums in the country for coverage, more than 15 insurers have left the state in recent years. Citizens Property Insurance, the state-backed “insurer of last resort,” is Florida’s largest property underwriter, and […]
Is your home insurance poised to get pricier? There are warning signs (MA)
It’s hard to believe now, given the subsequent rigamarole. But when Julia Shanks first learned that her insurance company wouldn’t renew her policy because it wanted to reduce its risk with “coastal properties,” the North Shore resident wasn’t particularly concerned. Read the article……………………………….
As Storm Damages Mount, States Try to Make It Harder to Sue Insurers
Samari Lakes East, a nondescript condo complex near Miami, was battered by Hurricane Irma in 2017. The storm tore up the roof, causing water damage across Samari’s 635 units, home to retirees and blue-collar workers. The complex’s insurer, Heritage Property & Casualty Insurance, said the damage was only $22,107. In April, after a lengthy court […]
Healthy Financial Planning: Factoring in the Rising Costs of Insurance Premiums
As part of their financial planning and risk-management practices, business owners should regularly take stock of their insurance to ensure that they have the right types and amounts of coverage. Read the article……………………………….
Condo Column: Insurance Tips – Part II (NH)
Following up on the last column, there is the matter of your condominium association’s insurance deductible. To be clear, you will never get from your insurance company all of the money needed to make the repairs, for the simple reason that even if you get everything you wanted in your negotiations with the adjuster, the […]
Insurance Essentials for HOAs: A Guide to Safeguarding Your Community
Homeowners’ associations play a pivotal role in the upkeep of communities. From landscaping to shared amenities, HOAs are responsible for numerous tasks that enhance residents’ living experience and preserve property values. A large part of these responsibilities is planning for the long-term viability of the community. This is why finding and maintaining appropriate insurance coverage […]
As climate risks mount, the insurance safety net is collapsing
…….But as climate change intensifies extreme weather and claims pile up, this system has been thrown into disarray. Insured losses from natural disasters in the U.S. now routinely approach $100 billion a year, compared to $4.6 billion in 2000. As a result, the average homeowner has seen their premiums spike 21 percent since 2015. Read […]
Dropped by Your Home Insurer? You Need to Take These Steps Now
“I can’t impress upon you the stress the board was under,” said a member of a small homeowners association (HOA) in Boca Raton, Florida. By law, their HOA has to have insurance, but they couldn’t find another policy after receiving a non-renewal notice. Eventually, Citizens — the insurer of last resort in Florida — said […]
3 ways to lower your condo or co-op building’s insurance costs (NY)
Insurance can be a life saver for condos and co-op buildings facing problems such as flooding, accidents, or lawsuits. But it doesn’t come cheap. Read the article…………………………….
Fortune-Telling Exclusion
Now is the time of year when the calls and emails start rolling in: “How much should we budget for our insurance next year?” Those are often accompanied by, “When will we get our renewal proposal?” Well, since fortune telling is not covered by most insurance agents’ errors and omissions insurance, we really can’t tell […]
Homeowners Flock to Last-Resort Insurance Policies
Robert Dubie was paying around $1,100 a year to insure his Paradise, Calif., home before it burned down in a wildfire five years ago. He rebuilt it with a host of fire protections, but it costs 10 times as much to insure. Read the article……………………………
Help! My Association Can’t Afford Its Insurance Premiums (CO)
Unfortunately, we continue to see major increases to insurance premiums in Colorado, and for some communities, insurance has become practically unaffordable. In fact, it is no longer unusual to see annual premiums ranging between $600,000 and $800,000 for some associations, with no sign of relief in the near future. Read the article……………………………
Condo Column: Insurance tips (NH)
Some may think the topic of insurance is dull, and perhaps to some it is, but it’s also extremely important at your condominium association. Your board of directors likely knows the basics, i.e. that the Condominium Act requires every association to carry an insurance policy to cover the full replacement value of all structures on […]
The vicious cycle of homeowners insurance: It’s increasingly expensive to protect homes in the disaster-prone areas that need it most
It’s getting harder to find insurance in regions prone to hurricanes and wildfires, which is forcing homeowners to make risky decisions and causing some owners to lose their property altogether, Insider previously reported. Read the article………………………..
Insurers Are Fleeing Wildfire-Prone California. The State Has a Fix.
California regulators are making reforms to the state’s insurance system, as companies flee amid rising climate risk that they say they aren’t properly compensated for. Read the article………………………..
Lahaina condos could trigger broader insurance woes (HI)
At least one condo project burned to the ground in the Lahaina fire. There are likely others damaged or destroyed, but although I’ve seen references to condos, I haven’t found a list identifying those with significant damage. Rebuilding of condominiums is a trickier affair than rebuilding a single family residence. Read the article………………………..
Condo insurance market tightens, posing more challenges for residents, boards (FL)
Question: Our condo board says we cannot get insurance bids and that we have to stay where we are. Is that true? Read the Q&A……………………………….
Watch the Webinar: The Do’s and Don’ts of Handling Insurance Claims (FL)
We recently held an educational webinar with Steve Mason from Altieri Insurance Consultants to discuss the do’s and don’ts of handling insurance claims. Watch the webinar…………………………..
No Common Areas In Your HOA? Do You Still Need HOA Liability Insurance?
An HOA liability insurance is essential. It protects your homeowners’ association against liability claims. But what if you don’t have shared spaces in your HOA? Do you still need the insurance? Read the article………………………..
7 HOA Insurance Policies Your Association Needs
There are many HOA insurance policies homeowners associations need to protect themselves. But, it can be challenging to know which ones your association needs to function. Not everything is essential. Regardless, there are a few insurance policies every association should get to keep themselves covered. Read the article………………………..
HOA Budgeting Tips: Understanding the Shifting Insurance Market
The insurance market has always been a dynamic arena, with predicting stability often resembling a high-stakes gamble. Even seasoned insurance agents, with their wealth of experience, find themselves in uncharted territory given the current market landscape. In this blog post, we’ll delve into the current state of the insurance market, shedding light on the unprecedented […]
Aging Infrastructure & Insurance (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 with regard to infrastructure and giving greater scrutiny to insurance applications. Read the article………………………..
Why Your Board Should List All Damages Following a Hurricane
In the aftermath of a hurricane, community associations face numerous challenges, including assessing and documenting the damages caused by the storm. While the immediate focus is often on cleanup and recovery, it is crucial for association boards to prioritize the comprehensive listing of all damages incurred. Read the article………………………..
Condo owner fears ‘best efforts’ language in law allows HOAs to scrimp on insurance protection (FL)
Question: I am troubled by your recent advice concerning condominium association insurance requirements. Your response stated that “the Condominium Act, at Section 718.111(11), provides that the association must secure ‘adequate’ property insurance, which insurance must be based on the replacement cost of the property …” Read the Q&A……………………………….
Hawaii Wildfires Spur Insurers to Reassess the State’s Risk
Hawaii has long been a low-risk and profitable market for insurers, but the Maui disaster could change that, and even have a global ripple effect. Read the article………………………..
3 Tips for Weathering Today’s Hard Insurance Market
Today’s so-called hard insurance market is the result of a perfect storm. Record personal injury claims have driven up the cost of liability insurance. Umbrella policies for excess liability protection are shrinking, with fewer carriers offering less coverage at higher prices. Property insurance premiums are soaring due to increased labor and material costs. And reinsurance […]
Florida report on insurance failure raises more questions than answers
After Sawgrass Mutual Insurance Co. went under in 2018, Florida regulators were supposed to do a financial autopsy to determine what had gone wrong. But they didn’t hire forensic accountants to dig into Sawgrass Mutual’s finances, as they had in previous insolvency cases. Read the article………………………..
What Are Some Insurance Claims That My HOA Homeowners Policy Will Not Cover?
A Homeowner’s Association is a double-edged sword. You have to pay membership dues and adhere to certain rules and guidelines. In return, you often get access to amenities, a neighborhood with well-kept yards and perhaps avoid neighbors that throw late-night parties with loud music. When it comes to insurance, sometimes an HOA for a condominium […]
Related Claim Provision Bars Coverage for Discrimination Claims Asserted Over a Six-Year Period (IL)
Applying Illinois law, the First District Appellate Court of Illinois has held that a related wrongful acts provision barred coverage for a series of “claims” made over the course of six years because the claims—as the insured conceded—arose out of the same claim. Steadfast Ins. Co. v. State Parkway Condo. Ass’n, 2023 WL 4105252 (Il. […]
It’s Hurricane Season. Do You Know the New Rules on Flood Insurance?
Hurricane season is here. All co-op and condo boards — and especially those whose buildings are located in or near flood zones — need to be aware that the insurance landscape is changing right alongside the Earth’s climate. Read the article………………………..
Adequate Community Insurance Coverage: How Much is Enough? (NJ)
The topic of insurance can provoke fear in the most steadfast of board members. It’s both terrifying in what its purpose implies, and yet at the same time mind-numbingly boring. It’s also one of the most important components in protecting our communities. Read the article………………………..
Condominium Associations Need to Cooperate and Provide Information to Move Along a Property Insurance Claim
Most property insurance companies take too long to investigate, request far too many documents, and delay analyzing the documents after they obtain them so that months pass before a decision is made on the property loss. This is not proper and not in the spirit of good faith claims service all condominiums are promised and […]
Pride and Prejudiced – When to Report Insurance Claims
A condominium association in Florida is required by law to “use its best efforts to obtain and maintain adequate property insurance to protect the association, the association property, the common elements, and the condominium property, which must be insured by the association pursuant to this subsection.” §718.111(11), F.S. While condominium associations are required to use […]
What If Our Association’s Fire/Casualty Insurance Is Cancelled Due To Risk Of Wildfires? (CA)
If your Association is located in a high-risk fire area, what can your Board of Directors do if the current master policy of fire and casualty insurance on your condominium or townhome buildings is not renewed? Due to the massive wildfires that have swept California over the past two years, many insurance companies (and their […]
Safeguarding Community Associations: The Annual Insurance Review Imperative
As community association board members serve as the governing body of neighborhoods, preserving their vitality and protecting their assets becomes a collective responsibility. In the realm of safeguarding, a vital practice is the annual review of insurance policies. In addition to essential coverages such as Property, Liability, and Building and Ordinance policies, let’s look at […]
Grand Strand HOA communities rocked by hard insurance market, some fear a housing downturn (SC)
In an area that’s seen its fair share of natural disasters rip people from their homes, a new threat has arrived on the Grand Strand and all of Coastal South Carolina. Property insurance is now leading to many sleepless nights for home and condo owners as well as those charged with representing their communities Read […]
Navigating the Challenges of a Hard Insurance Market
As board members of a homeowners association (HOA), it is crucial to stay informed about the ever-changing dynamics of insurance markets. These markets can fluctuate between being hard or soft, which directly impacts the premiums and coverage options available to your community. In this blog post, we will explore the differences between hard and soft […]
The Cheshire Cat and Insurance Carriers
Insurance carriers are like the Cheshire Cat. They lure customers with catchy advertisements, and then issue policies filled with complex and confusing terms. After major losses, they arrive on the scene, then suddenly disappear, citing one or more policy exclusions in complex terms, a la the Cheshire Cat. Read the article………………………..
Residential Insurance Prices Increase as Insurers Slow Business in California
….. was surprised to receive a notice from his homeowner’s association (HOA) this spring letting him know that there would be an increase in insurance premiums for him and other condominium owners at The Met in Los Angeles’ San Fernando Valley. The letter stated the increase was due to instability in California’s property insurance market. […]
Homeowners insurance in Colorado skyrockets, Louisville condo owners see sevenfold increase (CO)
Some condo owners in Louisville are reeling after their homeowners insurance jumped 700%. And they’re not the only ones experiencing sticker shock. Premiums are soaring across the state due to high inflation on top of devastating fires, floods and hail storms. Read the article………………………..