CA Wildfires Impact HOA Insurance
California’s most recent wildfire season is putting pressure on insurance companies to reduce coverage to homeowners, possibly impacting roughly 14 million Californians living in more than 49,000 community associations.
“As the market for fire insurance tightens and policies become more expensive or nonexistent, boards will struggle to meet their obligations under the governing documents to obtain insurance, at least not without significant assessment increases to cover rising premiums,” says Matt D. Ober, partner at Richardson Ober DeNichilo in Pasadena, Calif., and a fellow in the Community Associations Institute’s (CAI) College of Community Association Lawyers (CCAL).
According to Joel W. Meskin, managing director of community association products at McGowan Program Administrators in Fairview Park, Ohio, and a CCAL fellow, the only solution for insurance companies right now is to significantly increase premiums, meaning that boards will have to either significantly raise assessments, levy a special assessment to fund the fire insurance premiums or go without coverage, which is impossible.
Click here to read CAI’s full story, “California Wildfires Impact HOA Insurance.”
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