The insurance market for HOAs is very volatile right now. Jonathan Naranjo from Newfront Insurance discusses how various kinds of HOAs should think about budgeting for these important premiums.
Jonathan explains the factors driving increases in insurance costs, emphasizing the impact of inflation, geographical location, and historical loss trends. He discusses the challenges faced by HOAs in high-risk areas, such as wildfire zones and regions prone to natural disasters like floods and hurricanes. Jonathan also offers practical advice on how boards can proactively prepare for renewals, collaborate with their broker partners, and communicate effectively with homeowners.
Key Topics
- The general expectation of a 10% increase in insurance premiums for most HOAs.
- The significant impact on premiums for high-risk areas, with potential increases of 50% or more.
- The importance of proactive communication and collaboration with insurance brokers.
- How global and national weather-related claims can affect local insurance premiums.
- Strategies for managing renewals and ensuring adequate coverage for associations.
Resources
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