What happens if our HOA can’t find insurance or our policy is cancelled?

A lapsed or cancelled HOA master policy triggers serious consequences on multiple fronts:

Lender requirements: Mortgages on units in your community typically require HOA coverage. Lenders can force-place coverage at the association’s expense — at rates far higher than market alternatives — or call loans in default.

Sales and refinancing: Homeowners in your community may be unable to sell or refinance their units without evidence of adequate HOA insurance, creating significant board liability.

Personal board member exposure: Operating without required coverage violates your CC&Rs and, for condominiums, may violate the Colorado Common Interest Ownership Act, potentially exposing board members to personal financial liability.

Uninsured losses: Any damage to common areas or third-party claims during an uninsured period falls directly on the association — and ultimately its homeowners through special assessments.

If your current carrier has issued a non-renewal or your policy has been cancelled, contact us immediately. We specialize in finding coverage solutions in difficult market conditions, including specialty admitted and non-admitted (surplus lines) carrier options.