5-minute read
Key takeaways at a glance:
- Nearly half of HOAs reported a property and casualty policy nonrenewal or cancellation last year.
- Nonrenewals are often tied to deferred maintenance, poor claims history or shaky financials.
- Proactive steps can give associations better odds of renewal and more favorable terms.
Insurance renewals have always been a stress point for HOA boards, but the landscape has rarely looked this rough. In its 2025 Insurance Coverage Trends in Community Associations report, the Foundation for Community Association Research found that 47% of associations had their property and casualty policies nonrenewed or cancelled in 2024.
That’s nearly half of communities suddenly scrambling to replace coverage — often with fewer carriers willing to bid, higher premiums, and deductibles that can gut reserves. Nonrenewals are no longer rare events; they’re a systemic risk.
For HOA management companies, this trend brings both challenge and opportunity. Boards are looking for guidance, and the managers who can help their clients avoid the nonrenewal trap will stand out as indispensable partners.
Why Nonrenewals Happen
Carriers don’t walk away without a reason. The most common triggers are:
- Outdated property valuations. If replacement-cost numbers are years old, underwriters assume they’re wrong — and that the association is underinsured.
- Thin financials. HOAs relying on special assessments instead of steady reserves signal instability. Insurers want proof of consistent financial strength.
- Poor claims experience. A pattern of losses — especially water damage, slip-and-falls, or fire — without documented risk improvements is a red flag.
- Risk concentration. Communities in wildfire, hurricane, or hail zones face a shrinking pool of willing carriers. Associations that don’t actively mitigate those risks are the first to be dropped.
5 Steps to Improve Renewal Odds
Here are practical ways management companies can put their boards in the best possible position at renewal time:
1. Address Deferred Maintenance
Peeling paint, worn-out roofs, aging plumbing, and cracked pavement may not trigger claims today, but they signal bigger problems tomorrow. Underwriters see deferred maintenance as a sign of neglect and an increased likelihood of future losses. Communities that stay ahead on repairs not only reduce claims but also show insurers they take risk seriously.
2. Tell the Full Claims Story
Losses happen. What matters is whether the community learns from them. If a water-damage claim led to upgraded plumbing or new maintenance protocols, document it. If a slip-and-fall case triggered sidewalk repairs and better lighting, highlight it. Underwriters are more willing to forgive claims if they see corrective action.
3. Update Property Valuations Regularly
An appraisal that’s more than three years old is a liability. Reconstruction costs have risen dramatically, and stale valuations scream “underinsurance.” An updated appraisal shows underwriters the HOA knows its true exposure and takes risk management seriously.
4. Strengthen the Financial Picture
Carriers want predictability. Associations that run on bare-bones budgets and lean heavily on special assessments look unstable. Management companies should work with boards to:
- Build adequate reserves.
- Adjust assessments steadily instead of relying on surprise levies.
Keep financial records clean, transparent, and audit-ready.
5. Work With the Right Broker
Not every broker has the expertise or market access to get tough renewals across the line. HOA-focused brokers know how to frame risk, present the community’s story, and connect with carriers who still write the business. For management companies, partnering with the right advisor can mean the difference between renewal and another frantic search for coverage.
What This Means for Managers
The message for management companies is clear: nonrenewals aren’t random acts of underwriting. They’re predictable outcomes when associations let appraisals age out, run thin on reserves, or fail to address recurring losses.
Helping your boards stay ahead of these issues isn’t just about saving money — it’s about making sure coverage stays in place when it’s needed most.
The Mahoney Group, based in Chandler, Ariz., is one of the largest independent insurance and employee benefits brokerages in the U.S. For more information, visit our website or call 877-440-3304.
This article is not intended to be exhaustive, nor should any discussion or opinions be construed as legal advice. Readers should contact legal counsel or an insurance professional for appropriate advice.