What should an HOA board do when the master insurance policy is not renewed?

By OurHOA · General information · Revised September 29, 2026

What an HOA board does after a master insurance nonrenewal notice: state notice periods, the market search, surplus lines and Citizens, owner notice, a timeline.

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The short answer

Treat the notice as a deadline. Write down the date it arrived, the date coverage ends and the reason the insurer gave. Call your agent the same day and ask for a written plan to replace the policy. Order your loss runs, check whether the notice met your state's minimum notice period, and tell the rest of the board within 24 hours. Do not let the policy lapse while you wait for a better quote. Most declarations require property and liability coverage, lenders require it, and a gap of even a week leaves the association paying any claim out of pocket. Notice periods, owner notice duties and coverage requirements vary by state and by your governing documents. This guide is general education, not legal or insurance advice.

Check the notice against your state's rules

Florida section 627.4133(2) covers personal lines and commercial residential property policies, and it names condominium association policies in its list. For those policies, the insurer must give the first-named insured written notice of nonrenewal at least 120 days before it takes effect. If your association is an HOA whose policy covers a clubhouse or other buildings, ask your agent how the policy is classified, since that decides which notice period applies. In Texas, Insurance Code section 551.054 lets an insurer refuse to renew a liability or commercial property policy only with written notice to the first-named insured at least 60 days before the policy expires. If the notice goes out late, coverage stays in effect until the 61st day after the notice was mailed or delivered. Section 551.055 requires the insurer to state its reason. That subchapter applies to insurers admitted in Texas. In Colorado, section 38-33.3-313(8) says the insurer on a required association policy may not cancel or refuse to renew it until 30 days after notice is mailed to the association and to each owner and lender who holds a certificate of insurance. If your notice came late, do not assume you have extra time. Ask the agent and the association's attorney in writing how long coverage runs.

The first week: find out why

The reason on the notice shapes the whole search. A carrier that is leaving your state or dropping association business is not reacting to anything you did, and the agent can take a clean file to other companies. A nonrenewal tied to losses, an old roof, an inspection finding or a missed premium payment is different. Other carriers will see the same facts, so fix what you can and document it. Ask the agent five questions. Can the finding be cured before the expiration date, and would the carrier reconsider if it is? Which carriers write associations like ours in this state right now? Will we need surplus lines or a state plan? What will lenders accept? When will you have quotes in hand? Order five years of loss runs from the current carrier the same week, and check them for claims that were closed without payment or belong to another policy. Pull the roof ages and replacement cost figures from the reserve study, because the agent needs them in the submission, as our guide on reading an HOA insurance renewal quote explains.

The market search and the fallback options

The agent will usually try admitted carriers first, then surplus lines carriers, then any state plan. Surplus lines carriers can write risks admitted carriers will not, often at a higher price and with tighter terms, and they come with a tradeoff owners should hear about. The Texas Department of Insurance says surplus lines insurers do not have guaranty associations, so if one fails there is no guaranty fund to pay claims, and the policy must say it is not covered. In Florida, Citizens Property Insurance writes commercial residential policies for associations. A 2022 Citizens bulletin says condominium buildings go on the Condominium Association Coverage Form and cooperative and homeowner association buildings go on the Building and Personal Property Coverage Form, both at 100 percent replacement cost value. Ask your agent whether the association qualifies and what Citizens would cover. Other ways to rebuild coverage include splitting property and liability between carriers, buying wind or hail separately, and accepting a higher deductible. Before binding, lay every option beside your declaration's insurance article and any lender rules. A cheaper policy that fails those requirements can stall owners' sales and refinances.

Telling owners

Colorado sets a duty in section 38-33.3-313(3). If required insurance is not reasonably available, or a policy is canceled or not renewed without a replacement in place, the association must promptly hand-deliver or mail notice to every owner. Other states may not require it, but tell owners anyway. They need to warn their own agents and lenders, and a surprise premium increase lands better when owners watched the board work the problem. Notice wording the board can adapt: "On [date], [carrier] notified the association that it will not renew our master property policy when it expires on [date]. The reason given was [reason]. Our agent is seeking replacement coverage, and the board will meet on [date] to review quotes. The association remains insured until [date]. Please send this notice to your own insurance agent and ask about loss assessment coverage. If you are selling or refinancing, share it with your lender." Follow up when the new policy is bound, with the new carrier, the deductibles and the premium. Our guide on loss assessment coverage explains why owners should check their own policies now.

A timeline for a 120-day and a 60-day notice

With 120 days, as Florida requires for covered residential policies: Days 1 to 7, agent call, loss runs ordered, board informed, owners notified. Days 8 to 30, submission out to carriers, any curable inspection item fixed and documented. Days 31 to 75, quotes arrive and go on a comparison sheet. Days 76 to 90, board meets and votes to bind. Days 91 to 120, binder in hand, premium financed or paid, certificates issued to lenders, budget revised. With 60 days, as in Texas: compress the first two steps into the first two weeks, expect quotes around day 40, and schedule a board meeting for day 45 so you can bind with two weeks to spare. A motion the secretary can record: "Motion to bind the master property and general liability policies quoted by [carrier] through [agency], effective [date] to [date], at a total annual premium of $[amount] with a $[amount] deductible, and to authorize the treasurer to pay the deposit and sign the premium finance agreement." If an emergency meeting is needed, follow your state's notice rules. Our guide on calling an emergency HOA board meeting covers them.

Paying for the new policy

Replacement coverage usually costs more, and the increase often arrives mid-year. Look at the operating budget first. A contingency line or a surplus may cover part of the gap for the rest of the fiscal year. If it does not, the board has three common choices: a special assessment under whatever limits your documents and state law set, a premium finance agreement that spreads the cost over the policy year, or a mid-year budget amendment where the documents allow one. Each has notice and vote rules. Our guide on HOA special assessments covers them. Build the new premium into next year's budget honestly instead of hoping the market softens. In Colorado, the association may adopt written, nondiscriminatory policies on claims and deductibles under section 38-33.3-313(6), and a higher deductible is a good reason to adopt or update one now.

Mistakes boards make after a nonrenewal

Waiting for the agent to call. Letting one director handle it alone, then asking the board to approve a policy nobody else has read. Binding the first quote without checking exclusions, roof schedules and percentage deductibles. Forgetting that lenders and the declaration set minimum terms. Keeping owners in the dark until a special assessment arrives. Failing to keep a record of the search. Colorado requires coverage to the extent reasonably available, and a file showing which carriers declined and why is the board's proof that it looked. Letting coverage lapse because a quote came in high. A high premium can be financed, but an uninsured loss can't be undone.

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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