HOA Boards Urged to Plan for Rising Insurance and Reserve Costs
News related to:Robson Property Management · 3 min read
Robson Property Management, a firm specializing in Homeowners Association (HOA) and community association management, is urging HOA boards to take a closer look at insurance and reserve funding before adopting their 2027 budgets. The release notes that insurance and reserve funding are causing the most headaches for Oklahoma, Missouri, and Arkansas HOA boards this year.
Insurance premiums for community associations have risen steadily over the past several renewal cycles, and in a region that sees regular hail and windstorms, many carriers have also raised deductibles or narrowed coverage. Reserve funds are the slower problem, with many communities setting their contributions years ago and never revisiting them, even as the cost of replacing a roof or resurfacing a parking lot climbed. As a result, boards can end up choosing between a sharp dues increase and a special assessment.
Condominium boards have an added deadline. Effective January 4, 2027, Fannie Mae and Freddie Mac require condominium projects to allocate at least 10% of their annual budget to reserves, with the minimum rising to 15% by then. Associations that fall short could see their units become ineligible for conventional financing, affecting owners trying to sell or refinance. A current reserve study can serve as an alternative in some cases, but for many associations the change will stretch next year's budget.
Robson Property Management, with more than 30 years of experience serving homeowners associations, condominium associations, and planned communities in Oklahoma, Missouri, and Arkansas, is encouraging volunteer boards to give these line items a closer look before adopting their 2027 budgets. The firm provides financial management, budgeting, reserve planning, vendor coordination, covenant enforcement administration, board support, and day-to-day community operations.
The release states these figures: Homeowners associations across Oklahoma, Missouri, and Arkansas are heading into budget season, and insurance and reserve funding are causing most of the headaches this year. Insurance premiums have risen steadily over the past several renewal cycles, and in a region that sees regular hail and windstorms, many carriers have also raised deductibles or narrowed coverage. Reserve funds are the slower problem, with plenty of communities setting their contributions years ago and never revisiting them. Associations that fall short could see their units become ineligible for conventional financing, affecting owners trying to sell or refinance. A current reserve study can serve as an alternative in some cases, but for many associations the change will stretch next year's budget.
Oklahoma, with more than 30 years of experience serving homeowners associations, condominium associations, and planned communities, is urging HOA boards to plan for rising insurance and reserve costs in 2027. The release notes that insurance and reserve funding are causing the most headaches for HOA boards in the region this year. Insurance premiums have risen steadily over the past several renewal cycles, and in a region that sees regular hail and windstorms, many carriers have also raised deductibles or narrowed coverage. Reserve funds are the slower problem, with plenty of communities setting their contributions years ago and never revisiting them. As a result, boards can end up choosing between a sharp dues increase and a special assessment.
Condominium boards have an added deadline. Effective January 4, 2027, Fannie Mae and Freddie Mac require condominium projects to allocate at least 10% of their annual budget to reserves, with the minimum rising to 15% by then. Associations that fall short could see their units become ineligible for conventional financing, affecting owners trying to sell or refinance. A current reserve study can serve as an alternative in some cases, but for many associations the change will stretch next year's budget.
Robson Property Management, with more than 30 years of experience serving homeowners associations, condominium associations, and planned communities in Oklahoma, Missouri, and Arkansas, is encouraging volunteer boards to give these line items a closer look before adopting their 2027 budgets. The firm provides financial management, budgeting, reserve planning, vendor coordination, covenant enforcement administration, board support, and day-to-day community operations.