If your association hasn’t reviewed its insurance structure since last renewal, now is the time. The insurance market for condo and homeowner associations has shifted significantly. Underwriting has become more detailed, deductibles are rising, and carriers are increasingly selective about the risks they insure. In addition, only a limited number of insurers continue to write association policies.
Securing a renewal today takes more planning than it used to — and boards that start early are better positioned for stable outcomes.
Governing Documents and Insurance Structure Must Work Together
One of the most overlooked aspects of an association’s insurance program is how it aligns with its governing documents. Declarations, Articles, and Bylaws ultimately define insurance responsibilities between the association and unit owners. These documents determine what the association must insure, how deductibles are applied, and where financial responsibility falls after a loss.
When insurance coverage and governing documents are not aligned, it can lead to confusion, unexpected assessments, or gaps in protection. Consider a common example: if your declarations require the association to insure from the bare walls in, but your policy covers less, unit owners may face unexpected out-of-pocket costs after a loss — costs they had no reason to anticipate. Reviewing both together ensures the program functions as intended when a claim occurs, not just on paper, but in practice.
Deductibles and Financial Responsibility Have Shifted
Deductibles have increased across condo and HOA insurance, especially for wind and hail. In many cases, deductibles that were once manageable are now substantial enough to impact association finances and individual unit owners.
This shift makes it critical for boards to clearly understand:
• How deductibles apply under the current policy
• Who is responsible for paying them — the association, the unit owner, or both
• Whether current reserve funding and loss assessment provisions are adequate
These are not decisions that should be left until after a loss occurs. Boards should also confirm whether unit owners carry their own HO-6 policies with loss assessment coverage. This is a layer of protection that can help absorb the financial impact of a large deductible if the association passes costs to owners.
The Insurance Market Is More Selective Than Ever
Insurance carriers are evaluating associations more carefully, with greater attention to building condition, loss history, maintenance practices, and overall risk management. Associations that approach renewal proactively tend to have more options and better long-term stability.
Boards that maintain the following are typically in a stronger position at renewal:
• Accurate and up-to-date property valuations
• Documentation of recent capital improvements and maintenance work
• A clear loss history with context for any prior claims
• Evidence of proactive risk management and deferred maintenance plans
Insurance is no longer a transaction that happens once a year. It has become an ongoing part of an HOA’s financial and operational planning. The boards that treat it that way tend to experience fewer surprises.
A Proactive Approach Protects Long-Term Stability
An important question for every board to consider: has your insurance agent taken the time to walk you through the impact on your association? Not every agent who writes association policies approaches the relationship with this level of detail — but it matters.
Insurance plays a critical role in protecting both the association and its unit owners. Understanding how coverage works, how governing documents apply, and how market conditions are evolving allows boards to make informed decisions that support long-term financial health. Many boards find value in reviewing their insurance structure, governing documents, and risk position together, especially in today’s market.