MichaelS56 (Minnesota)
Posts: 859
Posts: 859
Posted:
How much is your master insurance premium going to go up at the next renewal?
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Association Insurance increase
Started by MichaelS56 • 18 replies • 774 views
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MelissaP1 (Alabama)
Posts: 13,836
Posts: 13,836
Posted:
That is more a HOA by HOA issue. Not every HOA has the same needs for insurance coverage. It is best to go shopping around to compare. Keep in mind not all insurance companies cover HOAs.
Former HOA President
MaxB4
Posts: 3,513
Posts: 3,513
Posted:
Quote:
Posted By MelissaP1 on 01/02/2023 6:44 PM
That is more a HOA by HOA issue. Not every HOA has the same needs for insurance coverage. It is best to go shopping around to compare. Keep in mind not all insurance companies cover HOAs.
That is more a HOA by HOA issue. Not every HOA has the same needs for insurance coverage. It is best to go shopping around to compare. Keep in mind not all insurance companies cover HOAs.
Informalive answer!
As usual
LetA (Nevada)
Posts: 2,679
Posts: 2,679
Posted:
Quote:
Posted By MichaelS56 on 01/02/2023 4:28 PM
How much is your master insurance premium going to go up at the next renewal?
How much is your master insurance premium going to go up at the next renewal?
Only time will tell. We haven't been notified of any premium increases. I suppose the insurance companies will let associations know ahead of time to add the premium increase before the budget ratification for the next year.
CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
Melissa is not entirely wrong in what she said.
In addition to the things that are raising premiums in general (a greater number of claims across the country due to more frequent extreme weather events, inflation leading to larger payouts, areas that are now prone to floods or wildfires that weren't before), there are the items that can raise an individual HOA's premiums (eg. a large number of smaller claims or a large payout to settle a lawsuit).
The usual tips for keeping insurance costs down include shopping around for providers, raising your HOA's deductible, and consider paying out of pocket for potential claims that are close to your deductible.
In addition to the things that are raising premiums in general (a greater number of claims across the country due to more frequent extreme weather events, inflation leading to larger payouts, areas that are now prone to floods or wildfires that weren't before), there are the items that can raise an individual HOA's premiums (eg. a large number of smaller claims or a large payout to settle a lawsuit).
The usual tips for keeping insurance costs down include shopping around for providers, raising your HOA's deductible, and consider paying out of pocket for potential claims that are close to your deductible.
TimB4 (Tennessee)
Posts: 21,059
Posts: 21,059
Posted:
We were not informed of any insurance premium increases until around 90 days before they were due.
We did utilize past expenses to identify the amount of likely increases each year and plan that into our budget.
We did utilize past expenses to identify the amount of likely increases each year and plan that into our budget.
WendyM5 (North Carolina)
Posts: 1,522
Posts: 1,522
Posted:
zero %
vis ta vie
BillH10 (Texas)
Posts: 1,217
Posts: 1,217
Posted:
Our client renewals for Property Damage and Liability in the city of Dallas have been 9% to 17% since July 2021, regardless of claims history.
Clients are multiple-unit condominium properties with common roofs, low to mid 6 figure unit selling prices, one with 7 figure selling price. Individual units range from 1500-2600 SF. We do not take on clients with elevators or swimming pools.
The locations of the clients in the urban Dallas area have no flood or wildfire exposure issues.
We have been told the increases are due to the increased cost of building materials, fallout from the Florida collapse especially as there are no laws in Texas regarding Reserve accounts (CC&Rs do contain a few loose words), the deep freeze of February 2021 in which it was found many buildings in this area/state are vulnerable to extended and intense cold, and hail/tornado exposure.
We live in a separately incorporated 105 SFH HOA sub-association of a 9,300 residential property master association. The property damage and liability insurance for the sub-association is separate from the master and did not increase for 2023. Insured property includes common areas consisting of two small parks with a few benches on which to sit, bits and pieces of common areas due to lot boundaries, a few fences, and no structures or amenities besides the parks.
Clients are multiple-unit condominium properties with common roofs, low to mid 6 figure unit selling prices, one with 7 figure selling price. Individual units range from 1500-2600 SF. We do not take on clients with elevators or swimming pools.
The locations of the clients in the urban Dallas area have no flood or wildfire exposure issues.
We have been told the increases are due to the increased cost of building materials, fallout from the Florida collapse especially as there are no laws in Texas regarding Reserve accounts (CC&Rs do contain a few loose words), the deep freeze of February 2021 in which it was found many buildings in this area/state are vulnerable to extended and intense cold, and hail/tornado exposure.
We live in a separately incorporated 105 SFH HOA sub-association of a 9,300 residential property master association. The property damage and liability insurance for the sub-association is separate from the master and did not increase for 2023. Insured property includes common areas consisting of two small parks with a few benches on which to sit, bits and pieces of common areas due to lot boundaries, a few fences, and no structures or amenities besides the parks.
KerryL1 (California)
Posts: 14,550
Posts: 14,550
Posted:
Our insurance increased almost 15% over last year. We had few claims and no problem areas, e.g., floods, have been added to our policy. We have 300 elevated concrete & steel balconies on our high rise that an architect certified as completely stable and safe. But the certification got us no breaks in our premium.
SusanH34 (North Carolina)
Posts: 21
Posts: 21
Posted:
Our rate increased 24.6% but it is locked for 3 years and was unchanged for the previous 3 years. This is a North Carolina community of 22 townhomes in 7 buildings, no amenities, but we do have an extensive storm water management system and unimproved land that could be hazardous to trespassers.
KellyM3 (North Carolina)
Posts: 2,239
Posts: 2,239
Posted:
Quote:
Posted By SusanH34 on 01/05/2023 3:39 PM
Our rate increased 24.6% but it is locked for 3 years and was unchanged for the previous 3 years. This is a North Carolina community of 22 townhomes in 7 buildings, no amenities, but we do have an extensive storm water management system and unimproved land that could be hazardous to trespassers.
Our rate increased 24.6% but it is locked for 3 years and was unchanged for the previous 3 years. This is a North Carolina community of 22 townhomes in 7 buildings, no amenities, but we do have an extensive storm water management system and unimproved land that could be hazardous to trespassers.
I don't know about the great concern for the dangers of raw land/forest on trespassers. You're paying an 8 percent average increase a year...I'd rebid the insurance in your case.
ChrisP5 (Missouri)
Posts: 165
Posts: 165
Posted:
Ours was up 11% over last year with no claims filed during the year. Our PM told us this was in line with what other associations were seeing. We did shop our coverage - many companies aren't bidding condo coverage right now according to our agent. From the time I got on our board in 2009 to this year our insurance has gone from $35,000 to $115,000.
ChrisP5 (Missouri)
Posts: 165
Posts: 165
Posted:
Ours was up 11% over last year with no claims filed during the year. Our PM told us this was in line with what other associations were seeing. We did shop our coverage - many companies aren't bidding condo coverage right now according to our agent. From the time I got on our board in 2009 to this year our insurance has gone from $35,000 to $115,000.
ChrisP5 (Missouri)
Posts: 165
Posts: 165
Posted:
Ours was up 11% over last year with no claims filed during the year. Our PM told us this was in line with what other associations were seeing. We did shop our coverage - many companies aren't bidding condo coverage right now according to our agent. From the time I got on our board in 2009 to this year our insurance has gone from $35,000 to $115,000.
ChrisP5 (Missouri)
Posts: 165
Posts: 165
Posted:
Ours was up 11% over last year with no claims filed during the year. Our PM told us this was in line with what other associations were seeing. We did shop our coverage - many companies aren't bidding condo coverage right now according to our agent. From the time I got on our board in 2009 to this year our insurance has gone from $35,000 to $115,000.
MichaelS56 (Minnesota)
Posts: 859
Posts: 859
Posted:
Walls out coverage is very different from all-in coverage. We have all-in coverage for our townhomes and we are anticipating between 10 to 15% increase this June.
BillC17 (Texas)
Posts: 26
Posts: 26
Posted:
Ours went up about 30% this year, eyepopping. We got the property management company to do some shopping and got it down to about a 15% increase with similar coverage, but still it seemed like a big jump in just one year.
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