Underinsurance is the most common problem we find when reviewing HOA policies, and it is usually invisible until a major claim. Warning signs include a replacement cost valuation that hasn’t been updated in two or more years, a policy written without a professional appraisal, an insured value that looks low compared with today’s construction costs, and an agent who doesn’t specialize in community associations.
Construction costs have risen sharply since 2020, so an association that was fully insured a few years ago may now face a coinsurance penalty at claim time. We recommend a coverage review at every renewal and a professional replacement cost appraisal every three to five years.
Call us at 303-768-8130. We offer complimentary coverage reviews for Colorado homeowners and condominium associations.
Related FAQs
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