How Condo Owner Associations Can Keep Insurance Costs Low

Crosswinds Insurance
Sep 23
2 min read

Condo Owner Associations (COAs) play a vital role in protecting shared property and ensuring financial security for all unit owners. But one of the biggest challenges COAs face today is rising insurance costs. Premiums for master policies have increased significantly due to storm activity, inflation in construction costs, and higher claim payouts. Fortunately, there are practical steps your COA can take to keep insurance expenses under control—without sacrificing protection.

1. Maintain the Property Proactively

Insurance companies look closely at loss history when determining premiums. A building with repeated water damage claims, for example, will pay more in the long run.

Proactive maintenance can help:

Regular roof inspections and timely repairs
Clearing gutters and drains
Upgrading outdated plumbing &/or electrical systems
Routine pest and mold checks

Staying ahead of issues not only avoids claims but also positions your association as a “lower risk” to insurers.

2. Increase Deductibles Strategically

Raising the master policy deductible is one of the quickest ways to reduce premiums. While this shifts some responsibility back to unit owners (depending on your bylaws), it can significantly lower annual insurance costs. Many associations offset this by requiring owners to carry HO-6 (condo unit owner) policies that cover interior damage and association deductibles.

3. Review Coverage Annually

Too often, COAs renew policies year after year without a full review. Work with an independent insurance agent who can shop multiple carriers and compare coverages. Make sure your policy isn’t over-insuring outdated features or duplicating coverage already carried by unit owners.

4. Build a Safety and Risk Management Culture

Insurance companies reward associations that reduce risk. Consider:

Installing fire sprinklers and smoke detectors in common areas
Adding security cameras and lighting in parking lots
Enforcing rules on grills, smoking, and water shut-off procedures when units are vacant

Documenting and sharing these safety initiatives can give you more negotiating power at renewal time.

5. Budget for the Long Term

Lower insurance costs don’t happen by accident—they’re the result of a well-managed property. A COA with healthy reserves and a track record of handling maintenance promptly is more attractive to insurers than one constantly “putting out fires.” Solid financial planning goes hand in hand with affordable insurance.

Final Thoughts

Insurance costs for condo owner associations will always fluctuate with market conditions, but COAs aren’t powerless. By focusing on maintenance, safety, smart deductibles, and annual reviews, you can keep premiums manageable while ensuring your property is properly protected.

At Crosswinds Insurance Agency, we work with associations across the region to tailor policies that balance affordability and coverage. If your COA hasn’t reviewed its insurance strategy recently, now is the perfect time.

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