Paying for Huge Increases in HOA Insurance Premiums

With the extremes in weather that Americans have experienced over the last few years, property damage insurance claims have caused a crisis in the insurance industry that writes insurance policies covering homeowners’ associations. The problem is compounded by state regulations that may impose limitations on the amounts a carrier can charge for insurance premiums. As a result, many insurance companies have discontinued writing policies for homeowners’ associations that are located in what the carriers deem “high-risk” areas, and such associations are forced to seek coverage from non-admitted insurance carriers that sell insurance in the less regulated “surplus” market where policies can be sold at significantly higher cost to the association.