Question:
We have a very small condo association (15 units) and our hazard insurance has skyrocketed over the last few years. We are the point where several have stopped paying dues (as we’ve had to increase them so much). We are taking legal steps with them, but are very close to running out of $. We expect our hazard insurance to go up again next year and will likely not have the $ for the down payment? What options do we have … Have owners get their own insurance? Go without insurance? Dissolve the HOA (no common amenities except a driveway)? Thanks.
– Russ
Answer:
Hi Russ,
Given your situation, there are a few options and considerations to explore. First, you can shop around and ask for quotes from multiple insurance providers. Some providers specialize in small associations and may offer more affordable options. You can also review your current policy to see if there are coverage areas you can adjust. Reducing unnecessary coverage might lower premiums.
If the governing documents allow it, one option might be to let individual owners insure their own units and any necessary shared elements. In this scenario, the HOA could maintain minimal insurance for shared risks only.
Consulting an HOA attorney and financial advisor can help you evaluate the feasibility of each option.
Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.
