Compiled by Patrick Comiskey
Forty people attended the Board Meeting held December 12, 2023 including eight Directors and Management representatives. It was a dramatic meeting owing to the bombshell laid at the feet of the property by the insurance industry.
INSURANCE RATES SKYROCKET
On December 9, Management was informed of an astronomical rate hike to the Green’s Property and Liability insurance premium for 2024. In 2023, the Association paid $196,345 in annual fees. Ms. Giles reported that the preliminary quote for the same coverage was likely to quintuple.
On December 9, Management was informed of an astronomical rate hike to the Green’s Property and Liability insurance premium for 2024. In 2023, the Association paid $196,345 in annual fees. Ms. Giles reported that the preliminary quote for the same coverage was likely to quintuple.
The VGOA’s insurance broker, Scott Litman, addressed the Board, explaining that due to natural disasters nationwide, including fires in California and hurricanes in Florida, the industry has experienced huge losses in recent years. As a result, carriers, including the property’s longtime insurance provider, Farmer’s, are pulling out of certain markets.
Mr. Litman reported that his office has been working since August to find the Green a new insurance provider, contacting over 30 carriers. Most declined, citing as reasons the property’s large size and age of its infrastructure. The carriers willing to extend coverage only agreed to cover a portion of the policy, meaning Village Green’s coverage will be spread across multiple carriers.
The Board briefly discussed possible funding scenarios, all of them grim. It was noted that the rate increase was so dramatic that funds needed for the very projects that would serve to improve our insurability—repairs and upgrades to plumbing, irrigation, roofing, and electrical systems—would be impacted.
Discussion and a vote were tabled until the Board could review the final quotes, and a special Board meeting was set for the following Tuesday, December 19. At that meeting, attended by some 200 residents, Board Treasurer Claire Knowlton presented four funding scenarios. “All of them are terrible,” she stressed. While three of the primary carriers confirmed their quotes at the time of the special meeting, the underwriter working with Mr. Litman’s office was still in negotiations with the secondary carriers.
Mr. Litman reported that his office has been working since August to find the Green a new insurance provider, contacting over 30 carriers. Most declined, citing as reasons the property’s large size and age of its infrastructure. The carriers willing to extend coverage only agreed to cover a portion of the policy, meaning Village Green’s coverage will be spread across multiple carriers.
The Board briefly discussed possible funding scenarios, all of them grim. It was noted that the rate increase was so dramatic that funds needed for the very projects that would serve to improve our insurability—repairs and upgrades to plumbing, irrigation, roofing, and electrical systems—would be impacted.
Discussion and a vote were tabled until the Board could review the final quotes, and a special Board meeting was set for the following Tuesday, December 19. At that meeting, attended by some 200 residents, Board Treasurer Claire Knowlton presented four funding scenarios. “All of them are terrible,” she stressed. While three of the primary carriers confirmed their quotes at the time of the special meeting, the underwriter working with Mr. Litman’s office was still in negotiations with the secondary carriers.
In order to meet the December 31 renewal deadline, the Board voted 7-2 to bind a policy not to exceed $1,340,154 and voted 9-0 to update the 2024 budget to reflect the new HOA fee and premium. To pay for it, some funds will be diverted from reserves and some will come from more assessments.
The Board voted 8-1 to increase 2024 HOA fees a second time. As of February 1, monthly HOA fees will be 20% higher than they were in 2023. A final premium of $1,133,331 for property and liability was confirmed on December 21.
The Board voted 8-1 to increase 2024 HOA fees a second time. As of February 1, monthly HOA fees will be 20% higher than they were in 2023. A final premium of $1,133,331 for property and liability was confirmed on December 21.
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