Many California community associations are dealing with massive and significant increases in their insurance premiums. These increases were not anticipated and as a result they are unbudgeted requiring that boards levy emergency special assessments, borrow from reserves or otherwise find the money to pay the increased cost of insurance.
It is estimated that about 14+ million Californians live or own a home or unit in a community association. All of their associations are required to obtain insurance coverage. Insurance professionals are reporting that the trend to decrease coverage and increase assessments and fees are not sustainable and will soon become prohibitive.
Some communities have had their policies canceled or not renewed and have been unable to find coverage.
We are in an insurance crisis. The Community Associations Institute’s California Legislative Action Committee (CAI-CLAC) has organized a “Call to Action” in hopes of bringing the current fire insurance crisis (specifically with respect to HOAs) before the California Department of Insurance and our state legislators.
All association board members and managers are encouraged to take action. Follow this link to find out more details on what you can do to respond to this Call To Action.
Call to Action re: Fire Insurance Crisis!
SwedelsonGottlieb is a law firm that represents California Community Associations. Contact us at 800-372-2207 or email us at firstname.lastname@example.org for more information regarding our services.