There are many reasons why an HOA, condominium association, or community association may see its insurance premiums increase at renewal. Some of these reasons are tied to the broader insurance market. Others are tied to the specific condition, location, claims history, and insurance structure of the community.
HOA property insurance, often called an HOA master policy, is designed to help cover the buildings and common areas that the association is responsible for, including shared areas such as roofs, hallways, lobbies, pools, fences, clubhouses, and other association-owned property. It may also include important liability coverages depending on the needs of the community.
Here are the main factors that can drive HOA insurance premium increases, along with the items that boards may be able to control:
Replacement Cost of the Property
The replacement cost is one of the most important parts of an HOA property insurance policy. This is the estimated cost to repair or rebuild covered property after a loss.
If the cost of materials, labor, roofing, electrical work, plumbing, mechanical systems, or code upgrades increases, the amount of insurance needed may also increase. When the insured value of the buildings goes up, the premium often goes up as well. Building material price growth remained elevated toward the end of 2025, with residential construction input costs still showing persistent pressure.
Boards should not assume that the market value of the property is the same as the replacement cost. Insurance is usually concerned with what it would cost to rebuild, not what the units would sell for.
Weather and Catastrophe Exposure
Weather is another major factor in HOA insurance rates. Wind, hail, wildfire, flood, hurricane, tornado, and severe storm exposure can all affect the price and availability of coverage.
This is especially important for associations in coastal areas, wildfire zones, hail-prone regions, or areas with older roofs and aging exterior systems. Natural catastrophe losses have remained a major issue for insurers, with Swiss Re reporting that insured natural catastrophe losses exceeded $100 billion in 2025 for the sixth consecutive year.
Even if your community has never had a major claim, insurers may still price the policy based on the risk of the area.
Claims History
The insurer will review the association’s prior losses. This may include water damage, roof damage, fire, liability claims, slip-and-fall claims, theft, vandalism, or repeated small claims.
Frequent claims can be a problem even when each claim is not very large. An insurance company may see repeated claims as a sign that maintenance, plumbing, roofing, drainage, security, or building systems need attention.
Boards can help by keeping good records of repairs, maintenance, inspections, and improvements. If a past problem has been fixed, that information should be available before renewal.
Age and Condition of the Buildings
Older buildings can be more expensive to insure because major systems may be closer to the end of their useful life. Roofs, electrical panels, plumbing lines, elevators, boilers, HVAC systems, balconies, parking structures, and fire protection systems can all affect the insurance quote.
An older property is not automatically a bad risk, but the board should be ready to show what has been updated and what is being maintained.
Examples include roof replacement records, plumbing upgrades, electrical inspections, reserve studies, fire alarm service records, sprinkler inspections, and elevator maintenance reports.
Deductibles
The deductible is the amount the association pays before the insurance carrier begins paying on a covered claim.
A higher deductible may reduce the premium, but it also shifts more financial responsibility to the association. A lower deductible may be easier at claim time, but it may increase the annual premium.
This is an area where boards may have some control. The right deductible depends on the association’s budget, reserves, governing documents, and the ability of owners to handle possible assessments.
Coverage Limits and Policy Structure
Not all HOA master policies cover the same things. Some communities have bare walls coverage. Others have single entity or all-in coverage. The difference can be very important when there is a claim inside a unit.
Bare walls coverage typically stops at the basic structure. Single entity or all-in coverage may extend further into the unit to include original fixtures and finishes, depending on the policy and governing documents.
Boards should review the governing documents and policy language together. A mismatch can create confusion between the association’s master policy and the unit owner’s personal insurance policy.
Carrier Availability
Sometimes premiums increase because fewer insurance carriers are willing to quote the risk. This can happen because of location, claims history, building age, roof condition, catastrophe exposure, or underwriting changes.
The Foundation for Community Association Research reported that, in its April 2025 snap survey, 89% of property and casualty policies had premium increases in 2024, and 23% had policies non-renewed or canceled by the insurer.
When fewer carriers are interested, the association may have fewer choices. This can lead to higher premiums, higher deductibles, lower limits, or coverage from specialty markets.
What Boards Can Control
Boards cannot control the weather, the reinsurance market, or the general cost of construction. However, there are several things boards can control.
Start the Renewal Process Early
Do not wait until the last minute. Some HOA insurance renewals require more underwriting information than they used to. Start early so the broker has time to approach multiple carriers, answer questions, and negotiate terms.
A rushed renewal can limit options.
Keep Maintenance Records
Maintenance records can help tell the association’s story. If the roof was repaired, the plumbing was updated, or a water issue was corrected, that should be documented.
Useful records may include:
Roof inspections
Plumbing repairs
Fire alarm inspections
Sprinkler reports
Elevator service records
Reserve studies
Completed capital improvement projects
Photos of repairs or upgrades
These records can help the insurance company understand that the board is actively managing the property.
Review Deductibles Carefully
A higher deductible may help reduce the premium, but the board should understand how that deductible would be funded after a loss.
The board should also review how the governing documents handle deductibles and assessments. In some cases, owners may need to carry loss assessment coverage on their personal policies.
Reduce Preventable Claims
Some claims are not preventable, but many smaller claims can be reduced with better maintenance and planning.
Water sensors, roof maintenance, lighting, security cameras, tree trimming, slip-and-fall prevention, snow and ice procedures, and regular inspections can all help reduce risk.
Match Coverage to the Governing Documents
The association’s insurance should be reviewed against the declaration, bylaws, and other governing documents. This helps determine what the association must insure and what unit owners should insure themselves.
This is especially important for communities with bare walls, walls-in, or all-in coverage responsibilities.
Communicate With Homeowners
When HOA insurance premiums increase, owners often want to know why dues or assessments are going up.
Boards should explain the reason in plain language. The increase may be due to replacement costs, market conditions, deductibles, claims history, or a change in available carriers.
Clear communication can help reduce confusion and frustration.
Work With an Experienced HOA Insurance Broker
HOA property insurance can be more complicated than a standard property policy. A community may need property coverage, general liability, directors and officers insurance, crime or fidelity coverage, umbrella coverage, equipment breakdown, ordinance or law coverage, flood, wind, cyber liability, and other protections.
At StarNet Insurance Group, we help associations review coverage options, compare available carriers, and build an insurance strategy that fits the community’s buildings, budget, and risk profile.
FAQ About HOA Premium Increases
Why did our HOA insurance premium increase?
Your HOA insurance premium may have increased because of higher replacement costs, severe weather exposure, prior claims, building age, deductible changes, reduced carrier availability, or broader insurance market conditions.
Can an HOA board control insurance rates?
The board cannot control the entire insurance market, but it can control maintenance, documentation, risk reduction, deductible planning, renewal timing, and how well the property is presented to insurance carriers.
Does a higher deductible lower HOA insurance premiums?
A higher deductible may lower the premium, but it also means the association must pay more out of pocket when there is a claim. Boards should review the budget, reserves, and governing documents before changing deductibles.
What should homeowners do when HOA insurance costs rise?
Homeowners should review their personal insurance policy, including loss assessment coverage. They should also understand what the HOA master policy covers and what the unit owner policy is responsible for.
Who can help an HOA compare insurance options?
An experienced HOA insurance broker can help the board compare coverage, review carrier options, explain deductibles, and align the master policy with the association’s governing documents.
At StarNet Insurance Group, we’re here to help you navigate the complexities of HOA property insurance so your association can protect its buildings, budget, and homeowners with confidence. Please feel free to contact us with any questions you may have.
