Community Trends - June 2025

How Community Associations Can Shine in a Tough INSURANCE MARKET By David Velasco, EBP, The Baldwin Group

Y our community association is like a high school senior getting ready for the prom, but what kind of “teenager” are you? On one hand, your association could be likened to a teen who woke up at 2:00 PM on the day of the prom after stay ing up all night playing Roblox (if you don’t know what that is, ask your actual kids or grandkids—they’ll fill you in). After grabbing an old sweater with stains on it, this teen runs out the door without taking a shower, hair disheveled, wearing paja ma pants and slippers like it’s any other normal high school day. This teen jumps in a dirty car and starts calling friends to see who can possibly be the plus one for the big dance. On the other hand, your association could be likened to a teen who has carefully planned for a memorable day. A limo is coming to pick up the couple, who are decked out. Dressed to a T—makeup, hair, nails, flowers—this teen is polished and proud.

These wildly different approaches to a prom are as different as the approaches that various community asso ciations take when planning for their insurance renewal. Some wait until the last minute (the last 30 days) to wake up and get ready for the negotiation of a contract that is often the largest line item in their annual budget. Some communities choose to prepare in advance with a structured, multi-year approach to insurance planning, which can help improve outcomes in a tight market. Why It Matters The 2024 hurricane season was more active than normal (and the second most costly on record). The California wild fires are projected to approach $50 billion—a staggering 30 percent of reinsurers’ combined natural catastrophe budgets for all of 2025. CONTINUES ON PAGE 20

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JUNE 2025