California’s insurance market has entered what the industry calls a “hard market” — driven by three converging forces: catastrophic wildfire losses (including major fires in Northern and Southern California), carrier withdrawals that have reduced competition, and construction cost inflation that has pushed replacement values significantly higher.
When fewer carriers compete for HOA business, pricing power shifts to insurers — and rates rise. In high-risk fire zones across much of California, this effect is amplified. Many associations have seen premiums double or even triple at renewal.
The outlook is gradually improving as California’s Department of Insurance implements regulatory reforms to attract carriers back to the state — but the timeline is uncertain. In the meantime, working with an independent agency like Elye Insurance — who has established relationships with the carriers still writing in California — is the most effective strategy for managing costs while maintaining proper coverage.
Related FAQs
Yes. California law gives HOAs strong reasons to carry insurance. Under the Davis-Stirling Act (Civil Code Sections 5800 and 5805), volunteer directors and officers and individual homeowners only get ...
These terms describe how much of the physical structure the HOA's master property policy covers — and directly impact what individual homeowners need in their own HO-6 policies: Bare ...
A lapsed or cancelled HOA master policy triggers serious consequences on multiple fronts: Lender requirements: Mortgages on units in your community typically require HOA coverage. Lenders can force-place coverage ...
