How should an HOA board choose an insurance agent and read the renewal quote?

By OurHOA · General information · Revised September 23, 2026

How an HOA board picks an insurance agent, prepares the renewal submission, and compares a renewal quote line by line: limits, deductibles, exclusions and premium.

Part of the HOA board handbook: vendors, projects and upkeep.

The short answer

Start the renewal 120 days before the policy expires, not when the agent emails a quote two weeks out. Give one agent a clean submission, then lay the renewal beside the expiring policy and compare it line by line: what is insured, for how much, on what valuation, with which deductibles and exclusions, and only then the premium. A renewal that costs 15 percent more with the same terms can be a better deal than one that costs the same but quietly raises the wind deductible to 5 percent of building value. Insurance requirements come from your declaration, state law and, for many condo and townhome communities, mortgage investor rules. They differ by state and by community, so read this as general education, not legal or insurance advice.

Know what you are required to carry

Before you look at price, write down the coverages the association must have. Start with the insurance article of the declaration, which usually lists property, general liability and sometimes directors and officers coverage with minimum limits. Then check state law. In Colorado, section 38-33.3-313 requires, to the extent reasonably available, property insurance on the common elements for at least full insurable replacement cost less deductibles, measured when the policy is bought and again at each renewal, plus commercial general liability. An association with 30 or more units must also carry fidelity insurance if an owner or employee controls or disburses its money, in an amount of at least two months of current assessments plus reserves. For an 80-home community billing $250 a month with $180,000 in reserves, that floor is $220,000. In Florida, section 720.3033(5) requires HOAs to carry insurance or a fidelity bond covering everyone who controls or disburses funds, including check signers and the president, secretary and treasurer, for the maximum funds in the association's custody at any one time. Members can waive it each year by a majority of the voting interests present at a properly called meeting. Texas boards should check their declaration closely and confirm any agent's license with the Texas Department of Insurance.

Choosing the agent

The Texas Department of Insurance puts the difference simply: a captive agent works for one insurance company and sells only its policies, while an independent agent sells for several companies. For a community association, you usually want an independent agent who already writes associations in your state, because only some carriers take HOA business and the agent needs access to them. Ask each candidate four things. How many community associations do they insure, and can you call two of those boards? Which carriers will they approach for you? How are they paid, by commission, a fee, or both, and will they put it in writing? Who handles claims questions after hours? Look up the agent's license on your state insurance department's site. In Texas, the Department of Insurance links to a lookup by name or license number. Pick one agent per renewal and let that agent approach the carriers. When three agents shop the same community to the same companies, the board gets duplicate submissions and quotes it cannot compare. Any director with a personal tie to an agent should disclose it and stay out of the vote.

Give the agent a clean submission

Underwriters price what they can see. Missing information gets priced as risk. Send the agent, at least 90 days before expiration, the current policy and declarations pages, five years of loss runs from the current carrier, a property schedule listing each building or amenity with its age, construction and estimated replacement cost, and the roof replacement dates from the reserve study. List safety and mitigation work: a new roof, sprinklers, gate or camera upgrades, wildfire clearing, pool fencing and drain covers. Include the number of homes, the rough share that are rented, and a short description of any claim still open. Mention how the association checks vendor insurance, since carriers ask. Our guide on checking a vendor certificate of insurance covers that routine. If a roof or clubhouse replacement cost was last estimated years ago, have it updated. Colorado's replacement cost requirement applies at every renewal date, and an old number can leave the association underinsured.

Reading the quote line by line

Build a comparison sheet with the expiring policy in one column and each quote beside it. Rows to fill in: named insured and covered locations; the property limit and whether it pays replacement cost or actual cash value, including any separate roof schedule that pays less as a roof ages; the all-other-perils deductible; any wind, hail or wildfire deductible and whether it is a flat amount or a percentage of building value; new exclusions or endorsements that were not on last year's policy; general liability limits per occurrence and in aggregate; umbrella limits; directors and officers limits and whether that policy covers volunteers, committee members and the manager; crime or fidelity limit compared with any legal minimum; and the premium, fees, taxes and payment terms. Percentage deductibles deserve their own line. A 2 percent wind deductible on $10 million of insured buildings is $200,000 per storm. If your association carries a master policy on buildings, Fannie Mae caps the deductible at 5 percent of the coverage amount and $50,000 per unit, and each separate wind or wildfire deductible must meet that limit. A policy outside those limits can keep buyers from getting a loan that Fannie Mae will buy. Our guide on what the master policy covers versus an owner's own policy explains where the association's coverage stops.

When the premium jumps

Ask the agent why before you react. The reason matters: a claim on your loss runs, a carrier leaving the state, a higher building value, or a market-wide rate change each call for a different response. Options a board can weigh include raising the all-other-perils deductible and setting aside the savings in a deductible fund, asking for credits for recent roof or fire safety work, splitting property and liability between carriers, and paying the premium in installments. Stay inside the limits your declaration and any lender rules set. In Colorado, section 38-33.3-313(6) lets the association adopt a written, nondiscriminatory policy on claims and deductibles and charge the deductible to an owner whose negligence caused the loss, so write that policy before the next claim, not after. If the association can't get required coverage or a policy is canceled or not renewed without a replacement, Colorado requires prompt notice to every owner by hand delivery or prepaid mail. Build the new premium into the budget honestly. Our guide on explaining a dues increase to homeowners covers how to present it.

A renewal calendar and wording to copy

For a policy that expires July 1: March 1, confirm the agent and send the submission. April, the agent markets the account and a director reviews the loss runs for errors. Mid-May, quotes arrive and the comparison sheet goes into the board packet. June board meeting, the vote to bind. Before July 1, get a written binder, set up payment, and request the certificates of insurance. Colorado requires insurers to mail notice to the association at least 30 days before they cancel or refuse to renew a required policy, so treat any notice as an emergency. A motion the secretary can record: "Motion to bind the property, general liability, directors and officers, and crime policies quoted by [carrier] through [agency] for July 1, 2027 to July 1, 2028, at a total annual premium of $[amount], with a $[amount] all-other-perils deductible and a [number] percent wind and hail deductible, and to authorize the treasurer to sign the premium financing agreement." A notice to owners when a deductible changes: "Our master insurance policy renewed on July 1. The deductible for wind and hail damage is now [number] percent of each building's insured value, up from [old amount]. Please send this notice to your own insurance agent and ask about loss assessment coverage."

Sources

These guides are general education for HOA boards and residents, not legal, tax, or financial advice. Rules vary by state and by your community's governing documents - check with a professional for your situation.

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