More than 90% of respondents in a recent survey conducted by the Foundation for Community Association Research reported that their property and casualty insurance premium had increased at the last or current renewal with 24% citing an increase between $101 and $500, and 14% citing a larger increase. Eleven percent of respondents indicated that their property and casualty coverage was canceled or not renewed.
Much like local, state, and federal governments collect taxes to fund public services and programs, assessments are part of living in a community association. Homeowners have a responsibility to pay their assessments on time. Unfortunately, some owners refuse to pay or can’t pay assessments. What does that mean for the community? And how should board members respond?
Community associations in California are staring at skyrocketing insurance premiums. Some are facing increases of as much as hundreds of thousands of dollars per year. Community finances are being strained and, in some cases, it’s become impossible for new buyers to secure mortgage lending.
Managers who earn CAI’s Association Management Specialist (AMS) designation demonstrate a higher level of commitment to their career and the community association industry. Kimberly Anne Mosey, CMCA, AMS, a community association manager with KC Property Services in Huntington Woods, Mich., recently became the 11,000th person to earn the AMS designation.
As property insurance rates are somewhat stabilizing in 2022, umbrella liability rates continue rising for common interest communities. New challenges are emerging in the insurance landscape, and it is imperative for board members and community managers to partner with credentialed and experienced professionals who will guide them through this social inflation crisis and will help them mitigate liability claims.
