There are standard questions that insurance carriers ask when reviewing an HOA property insurance renewal. One of the most important areas is the association’s claims history.
Past losses help an insurer understand how often claims happen, how severe they are, and whether the same problems may happen again. A clean claims history can help an HOA appear more attractive to carriers. A difficult loss history may lead to higher premiums, larger deductibles, coverage restrictions, or fewer carrier options.
Here are the basic items that may affect your HOA insurance renewal pricing:
Number of Claims
Carriers will look at how many claims the association has filed over the past several years. One small claim may not cause a major issue. Several claims in a short period of time may suggest that the property has ongoing risk concerns.
Type of Claims
Not all claims are viewed the same way. A one-time wind event may be treated differently than repeated water damage, slip-and-fall claims, fire losses, or theft-related claims.
Common HOA claims may include:
Water damage
Roof damage
Fire or smoke damage
Hail and wind losses
Slip-and-fall injuries
Pool or clubhouse incidents
Vandalism or theft
Equipment breakdown
Director and officer disputes
Size of the Loss
The total amount paid by the carrier is important. A small repair claim may have less impact than a large building loss. If the claim involved major roof replacement, extensive water damage, or a liability settlement, it can affect how the renewal is priced.
Open vs. Closed Claims
An open claim can make renewal more complicated because the final cost is not yet known. Carriers may be cautious if a claim is still being adjusted, disputed, or litigated.
Closed claims are easier to review because the insurer can see the final payout and the reason for the loss.
Repeated Water Damage
Water damage is one of the claim types that carriers often review carefully. Repeated leaks from plumbing, roofs, balconies, windows, or common-area systems may suggest maintenance problems.
If your HOA has had water claims, it helps to show what was repaired and what steps were taken to prevent the same issue from happening again.
Roof and Exterior Losses
The condition of the roof, siding, gutters, balconies, and exterior walls can have a major effect on HOA property insurance. If prior claims involved roof leaks, hail, wind, or structural damage, the carrier may ask for roof age, inspection reports, photos, or repair records.
Large Deductible History
If the HOA has filed claims that were close to the deductible amount, the carrier may question whether smaller claims are being submitted too often. Some associations choose higher deductibles to reduce premium costs, but the board should understand how that affects the budget and possible owner assessments.
Repairs Completed After the Claim
Carriers want to know whether the cause of loss was corrected. For example, if a pipe burst, was the pipe replaced? If the roof leaked, was the roof repaired or replaced? If someone slipped near the pool, were warning signs, lighting, or surface repairs added?
Good documentation can help the HOA tell a better renewal story.
Property Maintenance
Claims history is only part of the review. Carriers may also consider the overall condition of the property. Preventive maintenance, reserve planning, roof inspections, plumbing updates, tree trimming, snow removal procedures, and safety rules can all help show that the board is managing risk.
Loss Runs
A loss run is a report from the insurance carrier showing prior claims. It usually includes the date of loss, type of claim, amount paid, amount reserved, and whether the claim is open or closed.
Before renewal, the HOA should request updated loss runs so the insurance agent can approach the market with accurate information.
What Boards Can Do Before Renewal
An HOA board can help improve the renewal process by preparing early. Useful items include:
Current loss runs
Updated property details
Roof age and repair records
Photos of completed repairs
Inspection reports
Reserve study information
Maintenance schedules
Safety procedures
Copies of governing documents
Current master policy information
Why Claims History Matters
Insurance pricing is based on risk. If an HOA has frequent or severe claims, the carrier may expect future losses to be more likely. That can increase renewal pricing.
However, a past claim does not always mean a bad renewal. The key is explaining what happened, what was repaired, and how the association is reducing future risk.
FAQ About HOA Claims History
How far back do insurance carriers review HOA claims history?
Many carriers review several years of loss history, often three to five years, depending on the market and type of coverage.
Can one claim increase HOA insurance premiums?
Yes, especially if the claim was large, still open, or related to an issue that could happen again. However, one well-documented claim may be easier to explain than repeated losses.
What is the best way to prepare for HOA insurance renewal?
Start early, request updated loss runs, collect repair documentation, review maintenance records, and work with an insurance broker who understands HOA property insurance.
Do open claims affect renewal pricing?
Open claims can affect renewal pricing because the final cost is not yet known. Carriers may price more cautiously until the claim is resolved.
Can better maintenance help reduce future insurance problems?
Yes. Strong maintenance records, inspections, repairs, and safety procedures can help show carriers that the HOA is actively managing risk.
How StarNet Insurance Group Can Help
At StarNet Insurance Group, we help HOA boards understand the renewal process and prepare the information carriers need. We can review your claims history, explain what may affect pricing, and help your association look for HOA property insurance options that fit your buildings, budget, and homeowners.
To schedule a consultation, please call us at (312) 445-7777.
