By Ryan Hurley, LaBarre/Oksnee (LO)
In today’s evolving insurance landscape, homeowners associations (HOAs) are facing increased scrutiny from carriers. Rising claim severity, climate-related risks, and aging infrastructure have all contributed to tighter underwriting standards and higher premiums. As a result, “insurability” has become a critical focus for community associations. The good news: proactive upgrades and strategic improvements can significantly enhance an HOA’s risk profile—often leading to broader coverage options, more competitive pricing, and stronger carrier relationships.
At its core, insurability is about how attractive (or risky) your community appears to insurance providers. Carriers assess a variety of factors, including property condition, maintenance practices, loss history, and risk mitigation efforts. Communities that demonstrate diligence in these areas are far more likely to secure favorable terms.
One of the most impactful ways to improve insurability is through roof upgrades and maintenance. Roofs are one of the most common sources of insurance claims, particularly in regions prone to hail, wind, or snow. Replacing aging roofs with modern, impact-resistant materials can dramatically reduce risk. Many insurers now offer premium credits or deductible reductions for Class 4 impact-resistant roofing. Even if full replacement isn’t immediately feasible, implementing a documented inspection and maintenance program signals to underwriters that the association is actively managing exposure.
Another key area is electrical system modernization. Outdated wiring, such as aluminum or knob-and-tube systems, presents a significant fire hazard and is often a red flag for insurers. Upgrading electrical panels and wiring not only improves safety but can also open the door to carriers that would otherwise decline coverage. Similarly, replacing outdated HVAC systems and water heaters can reduce the likelihood of fire and water damage claims.
Plumbing improvements are equally important. Older galvanized or polybutylene pipes are known for failure risks and can lead to costly water losses. Transitioning to modern materials like copper or PEX piping can significantly enhance a property’s insurability. Additionally, installing leak detection systems or automatic shut-off devices demonstrates a proactive approach to loss prevention—something underwriters increasingly value.
Beyond infrastructure, fire mitigation and life safety enhancements play a major role in insurance eligibility. Communities located in wildfire-prone areas, for example, can benefit from defensible space practices such as vegetation management, fire-resistant landscaping, and ember-resistant vents. Installing or upgrading fire alarm systems, sprinkler systems, and clearly marked hydrants can also improve underwriting outcomes. These measures not only protect property but can also save lives, making them a worthwhile investment on multiple levels.
Exterior and structural improvements also contribute to a stronger risk profile. Regularly maintaining siding, balconies, decks, and stairways helps prevent liability claims and structural failures. Addressing trip hazards, improving lighting in common areas, and ensuring compliance with building codes all demonstrate a commitment to safety and risk management.
Equally important is the implementation of a formal maintenance and reserve strategy. Insurance carriers increasingly request reserve studies and maintenance records as part of the underwriting process. A well-funded reserve account and a clear plan for future capital improvements signal financial stability and responsible governance. This reassures insurers that the association is capable of maintaining the property over time and addressing issues before they escalate into claims.
Another often-overlooked factor is loss history management. While past claims cannot be erased, communities can influence how future losses are perceived. Conducting post-claim analyses, identifying root causes, and implementing corrective measures show insurers that lessons have been learned. Over time, a reduced frequency and severity of claims can significantly improve marketability.
Communication and documentation are also key. When approaching the insurance market, presenting a comprehensive “risk narrative” can make a meaningful difference. This includes outlining completed upgrades, ongoing projects, and long-term plans. Providing photos, inspection reports, and contractor documentation helps underwriters clearly understand the improvements made and the community’s commitment to risk reduction.
Finally, it’s important for HOA boards to work closely with knowledgeable insurance professionals who specialize in community associations. These experts can help identify high-impact upgrades, prioritize improvements based on underwriting trends, and position the community effectively in the marketplace.
In a challenging insurance environment, HOAs that take a proactive, strategic approach to property upgrades and risk management are far better positioned for success. Improving insurability isn’t just about securing coverage—it’s about protecting the long-term financial health and safety of the community. By investing in thoughtful upgrades today, associations can build a more resilient, insurable future tomorrow.
About the Author: This article is brought to you by Ryan Hurley, Executive Vice President at LaBarre/Oksnee (LO). It is with deep sadness and heavy hearts that we inform you of Ryan’s recent passing. We have lost not only a respected leader, mentor, and colleague, but most importantly, a dear friend and a great man. He will be deeply missed. Ryan greatly valued working closely with CAI, and with that, we extend our sincerest sympathies, as we know the relationships he built were meaningful and longstanding. Ryan genuinely loved what he did and cared deeply about the industry, but more importantly, he cared about the people in it. He was passionate and felt honored to serve as a humble helper and a trusted resource, always willing to share his expertise in HOA insurance.
