The 2026–2027 Insurance Market

After several challenging renewal cycles, the community association insurance market is beginning to show signs of greater stability. While every community and market is different, well-managed associations with strong maintenance programs, favorable loss histories, and proactive risk management are beginning to see more competitive renewal options in several areas of coverage.

That does not mean insurance challenges are behind us. Location, construction type, catastrophe exposure, prior claims, and the overall condition of the community continue to play a major role in how insurers evaluate risk. For California and Texas communities, those risks can look very different depending on where your association is located.

Property Insurance Is Showing Signs of Improvement, but Exposure Continues to Matter

For many well-maintained communities, the property insurance market is becoming more favorable. Increased competition and improved market conditions are creating opportunities for flat renewals or, in some cases, premium reductions.

Where your community is located remains a major factor in insurance pricing and deductible structures.

For California associations, wildfire and earthquake exposure remain important considerations. The earthquake insurance market is currently competitive, creating opportunities for some associations to review limits, deductibles, and coverage terms. Wildfire pricing remains elevated in highly exposed areas, but insurers are increasingly recognizing communities that invest in mitigation and preparedness.

For Texas associations, windstorms, hail, and floods continue to drive underwriting decisions. Coastal and flood-prone communities may face higher deductibles or additional coverage requirements. Many insurers also evaluate drainage systems, flood mitigation efforts, and emergency response planning when reviewing a community's risk.

The key takeaway for Boards is that insurers increasingly want to understand what the association is actively doing to reduce its specific risks.

Regardless of location, insurers continue to pay close attention to roof age and condition, water damage history, deferred maintenance, building construction, and reserve planning.

Umbrella and Excess Liability Remain Challenging

Excess and umbrella liability coverage continues to be one of the more difficult areas of the insurance market. Rising litigation costs, larger jury awards, security concerns, and increasingly severe claims continue to impact pricing and available coverage limits.

California communities in urban or higher-crime areas may face greater pricing pressure, while Texas communities with strong liability performance and risk management practices may see more moderate increases. Boards should continue working closely with their insurance advisors to review liability limits and coverage structure.

Strong Financial Controls and Governance Matter

Insurers are looking at more than the physical condition of a community. Strong financial controls, reserve planning, fraud prevention, and good governance can all impact how an association is viewed during the renewal process.

Associations with strong financial oversight and well-documented decision-making are generally viewed more favorably, while governance disputes, fair housing concerns, and employment-related claims can impact coverage and pricing.

Looking Ahead

Overall, the 2026–2027 insurance market is showing signs of improvement, but renewal results will continue to vary significantly based on location and individual community risk. The biggest takeaway for Boards is simple: proactive planning matters. Proactive risk management only delivers its full value when it’s properly communicated to the insurance marketplace. Your insurance broker and advisor should serve as an advocate for the Association, ensuring underwriters understand the community’s investments in maintenance, capital improvements, and risk mitigation so those efforts enhance the Association’s desirability and support the most competitive insurance terms available.

Associations with proactive maintenance, strong reserve planning, and effective risk management are often better positioned at renewal. Key areas of focus include aging infrastructure, roof and water intrusion concerns, emergency planning, catastrophe preparedness, and strong financial controls.

As your association approaches renewal, work closely with your Community Manager and insurance advisor to understand current market conditions, review your coverage, and identify opportunities to strengthen your community's risk profile.