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.
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.
While large-scale cyberstrikes are most talked about, community associations should not consider themselves invulnerable. Each community should understand their risks, evaluate cybersecurity protection, and decide whether specialized insurance is worth the cost.
Business partners have adjusted their operations to continue serving community association clients during the pandemic. They also reported no major impacts to staffing, client base, or budgeted expenses, according to a CAI survey.
Reopening amenities and common areas during the COVID-19 pandemic is a complicated decision for community association leaders. Boards and managers need to ask not only can various amenities be opened, but should they?
