Californiaโs most recent wildfire season is putting pressure on insurance companies to reduce coverage to homeowners, possibly impacting roughly 14 million Californians living in more than 49,000 community associations.
โAs the market for fire insurance tightens and policies become more expensive or nonexistent, boards will struggle to meet their obligations under the governing documents to obtain insurance, at least not without significant assessment increases to cover rising premiums,โ says Matt D. Ober, partner atโฏRichardson Ober DeNichiloโฏin Pasadena, Calif., and a fellow in the Community Associations Instituteโs (CAI) College of Community Association Lawyers (CCAL).
According to Joel W. Meskin, managing director of community association products at McGowan Program Administrators in Fairview Park, Ohio, and a CCAL fellow, the only solution for insurance companies right now is to significantly increase premiums, meaning that boards will have to either significantly raise assessments, levy a special assessment to fund the fire insurance premiums or go without coverage, which is impossible.
ืืืฅ ืืื to read CAIโs full story, โCalifornia Wildfires Impact HOA Insurance.โ
ืืืืฉืืช ื ืืกืคืืช ืืืคืจ, ืืืฅ ืขื ืืชื "ืื ืงืืจื ืืืคืจ" ืืืื.
