Community Trends - June 2025

“...it is evident that the January fires will impact all carriers insuring communities in the U.S.”

INSURANCE MARKET... from page 18.

Reinsurers are the insurance companies for the insurance carriers. They play a key role in stabilizing the insurance market and influencing the “appetite” of carriers offering policies for your condominium, HOA, or cooperative. They also impact the final premium that communities pay. This is particularly important because when they take a $50 billion hit, they raise rates. While the insurance market showed positive signs during the last quarter of 2024 and the early days of 2025, it is evident that the January fires will impact all carriers insuring communities in the U.S. Association boards should brace themselves for potential changes in market conditions in the second half of the year. How to Get Prepared While it is impossible to predict the future, it is important to keep an eye on what is happening. Insurance is pur chased in 12-month increments but should be negotiated with a much broader scope. Insurance carriers examine the

past five years of loss history to identify trends and poten tial issues that could impact their bottom line. Similarly, communities can look five years ahead and implement a written strategic plan to make meaningful improvements that positively impact their insurability. Below is a non-exhaustive list of measures that boards should discuss in collaboration with their attorney and insurance broker: • Launch a water heater replacement program. • Require owners to install burst-resistant (braided steel) washing machine hoses. • Install protective pans under washing machines to pre vent water damage. • Set a minimum heat requirement of 55°-60° for vacant units to prevent frozen pipes. • Mandate regular dryer vent and chimney inspections/ cleanings. CONTINUES ON PAGE 22

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JUNE 2025