December 2022 CAI-NJ

20th consecutive quarter of insurance premium increases. Insurance companies in the com mon interest community market are scrutinizing losses and building val ues that are negatively affected by inflation. Many insurers are exiting the market and no longer writing community association policies due to losses. Increased scrutiny on structural inspections/integrity is more than ever a hot topic for carriers that remain in this market. It is not uncommon to see rate increases in the 7-11% range for even “clean” accounts and this trend does not appear to have an end in sight. I predict that insurability will continue to be a challenge in 2023. Mohammed F. Salyani CPA, FCCA(UK), Principal – WilkinGuttenplan (Accounting) To say we are living in unpredictable times is a gross understatement. Yet one always must look ahead to try and maintain some semblance of continuity and preplanning. Between 2021 and 2022, WilkinGuttenplan surveyed over 400 communities and noted some material changes and trends, such as an over 5% increase in maintenance fees and operating expenses. In addi tion, we also saw an increase in unit owner delinquencies of over 50%. That said and looking at an inflation rate of over 8% for 2022, these numbers can only be expected to increase. Furthermore, rising costs have only exacerbated the issue of underfunded reserve funds. I think we will find more and more associations facing large defi cits in their reserves as they deal with the prospects of major projects in the future. CONT I NU E S ON PAGE 42

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