I am well versed at sending emails and hosting meetings telling managers and board members that their insurance has been non-renewed and / or premiums are going up 200%+. Well recently, I was on the receiving end of that email. I can now quite literally say that I feel your pain.

Some of you know that I sit on a board of directors for a common interest development in Hawaii. We are a boutique timeshare resort located on Maui, just over 5 miles from where a wildfire recently devastated Lahaina. While we were not physically damaged by the fire, our carrier felt that our location was no longer desirable and non-renewed our policy. As you can imagine, many other carriers feel the same way and we were having difficulties finding replacement coverage.

Working with an agency that specializes in resort communities, we were able to place coverage. Luckily, I had been warning the other board members about the potential for drastic premium increases for over a year and was able to convince them to budget accordingly. My “doom and gloom” messages were received and while our property premium alone went up 282%, the entire package came in under budget.

Our board was also well prepared to receive the proposal at the very last minute. As is par for the course right now, underwriters did not release quotes until the Friday before our Sunday renewal. Our broker had told us to expect this, and I was able to back up his story with my own tales of horror, so the required players were ready and waiting when the documents arrived for signature.

So, what is the purpose of my storytelling? To make a few points:

• Work with an experienced agent who specializes in community associations.
• Prepare for premium increases during budgeting.
• Expect last-minute proposals.

Preparation prevents panic.

This insurance crisis is not going away any time soon, so we need to buckle up! If your board members don’t believe what you are telling them, feel free to share our blog posts with them or shoot us an email. We have your back.

Terri Guest, CIRMS, CMCA, (CA License #0F92313) is the Director of Client Experience & Education for Berg Insurance Agency in partnership with LaBarre/Oksnee and can be reached at Terri@berginsurance.com.

Have an insurance question? Ask Terri and your question may be the subject of next month’s edition of Coverage Corner! If your question is picked, you will win a gift card!