Is Your HOA at Risk of Insurance Non-Renewal? Here’s What You Need to Know

Insurance has always been one of the largest and most important expenses for community associations. But in today’s volatile market, many HOAs are facing an even greater challenge: the possibility of insurance non-renewal. From rising premiums to stricter underwriting guidelines, boards are discovering that coverage they relied on for years may not be available when renewal time comes. Understanding why this is happening—and how to prepare—can help your community protect itself from unnecessary risk.

Why Non-Renewals are Increasing

The insurance industry is under pressure nationwide. Factors such as inflation, extreme weather events, construction cost spikes, and rising claims have made insurers more cautious about covering HOAs. As a result, some carriers are exiting certain states or regions altogether, declining to renew policies for associations with higher perceived risks, or increasing premiums significantly while reducing coverage limits. For HOAs, this means that it’s no longer safe to assume that your policy will be renewed automatically year after year.

Common Triggers for HOA Insurance Non-Renewal

While every community is different, insurers often look for red flags that suggest a higher chance of claims or losses. Some of the most common include:

• Deferred maintenance. Aging roofs, outdated plumbing, or lack of regular upkeep may signal higher claim potential.
• Inadequate reserves. If your reserve study shows underfunding, insurers may view the association as financially unstable.
• Past claims history. Multiple claims—even small ones—can raise concerns about risk management.
• Rising replacement costs. If your coverage limits haven’t kept pace with construction inflation, carriers may hesitate to renew without significant changes.

The Real-World Impact on Communities

When an HOA loses its insurance coverage, boards are often left scrambling. Non-renewal can force the association into expensive “last-resort” coverage with limited protection, thereby leaving owners vulnerable. In some cases, lenders may even refuse to finance or refinance mortgages in communities without adequate insurance, which impacts property values across the board.

How Boards Can Reduce Risk

Fortunately, many risks can be addressed with proactive planning. Here’s how your board can stay ahead:

• Start the renewal process early. Don’t wait until the last minute—begin reviewing your policy 4–5 months before renewal.
• Conduct regular maintenance. Keep records of repairs, inspections, and preventative work. Demonstrating regular upkeep will enhance insurers’ confidence in your community.
• Review coverage annually. Make sure that your policy limits reflect current replacement costs, especially in today’s construction market.
• Partner with HOA-focused brokers. Specialized brokers understand the unique risks of community associations and can help you find the right coverage.
• Strengthen financials. Ensure that reserves are properly funded and financial reporting is transparent. Strong financials build insurer confidence.

How Clear View HOA Financial Can Help

At Clear View, we understand that proper insurance coverage is critical for protecting your community’s financial foundation. Therefore, our services include:

• Coordinating annual insurance reviews with trusted national HOA brokers
• Providing accurate financial reporting to support coverage decisions
• Helping boards understand their options for property, liability, and D&O coverage
• Identifying potential red flags early so boards can address them before renewal season

The insurance landscape for HOAs is shifting quickly, and non-renewals are becoming more common. Boards that take a proactive approach by reviewing coverage early, keeping reserves strong, and working with experienced financial partners will be better positioned to protect their communities.

Ready to review your insurance strategy and ensure that your HOA is prepared for renewal season? Contact the experts at Clear View today to schedule a consultation!