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.