Let’s be honest: the insurance market for Colorado HOAs right now, kind of brutal!
Premiums are skyrocketing, providers are tightening their standards, and some communities are struggling to even get a policy. The question isn’t “Will insurance stay expensive?” It’s “How do we make sure our association still qualifies for it?”
The good news, associations can take clear, proactive steps to make themselves more attractive to insurance carriers, and in many cases, avoid major coverage headaches down the road.
Insurance providers are looking for signals that a community is low-risk, well-maintained, and responsibly governed. Here’s what they want to see:
1. Propane Tanks on Balconies or Decks
Insurance carriers are increasingly requiring associations to adopt rules that prohibit the use of grills on decks, balconies, or within 10 feet of any structure or overhang. Outdoor grilling is considered a significant fire risk and communities that allow it may find themselves ineligible for coverage. Many providers now expect associations to explicitly ban open-flame grills and the storage of propane tanks in these areas as a condition of issuing or renewing a policy.
2. Roof Age and Condition
Roofs over 15-20 years old are a red flag. In Colorado, hailstorms are a regular concern and insurers are paying close attention to roof conditions because of it. Older roofs or those made of materials prone to hail damage can significantly affect a community’s ability to secure or renew coverage. Carriers often request documentation showing the roof’s age, materials, and any recent repairs or inspections. Staying ahead of roof maintenance isn’t just smart, it’s essential to staying insured.
3. Short-Term Rentals (STRs)
Communities with high levels of transient occupancy, like short-term or vacation rentals, are often viewed as higher risk by insurance carriers. As a result, associations may face increased premiums, reduced coverage, or higher deductibles. Many insurers are now requiring a cap on the number of rental units before issuing a policy. Adopting a clear set of guidelines regarding short-term rentals not only helps with insurability, but also promotes stability and long-term community investment.
The bottom line is, getting “insurance ready” is about more than just checking boxes, it’s about being proactive, organized, and intentional. By staying on top of maintenance, adopting smart policies, and demonstrating strong governance, your community can not only improve its chances of securing coverage but also a safer, more stable environment for everyone.
If you’re looking for guidance on aligning your association’s rules and documents with insurance requirements, we’re here to help. Please contact an Altitude attorney with questions at 303.432.9999 or at [email protected].