Community Wide Home Owners Insurance

[Joe Whitley]

We currently own investment property in a residential community that has 84 homes. Like all other properties our home owners insurance continues to rise. One thought is to reach out to the HOA and negotiate a community wide package contract with a single vendor for Home owners insurance. This would be a basic package with available options offered to each participating home owner.. Any thoughts on the pros and cons of this approach?

[Melissa Haworth]

Negotiating a community-wide homeowners insurance package can be a great idea, but it has its ups and downs as you've identified. On the plus side, buying in bulk could lower everyone's premiums and simplify the process since no one has to hunt for their own policy. And having standardized coverage can help maintain property values.

There are definitely some drawbacks to consider. Homeowners might have different needs that a single package can't fully meet, and getting everyone to agree on one provider could be a challenge. The HOA would also need to handle the negotiation and administration, which can be a lot of work. And there's the risk that the basic package or few packages included in the overall offer might not offer enough coverage for some homes.

It might be helpful to survey your community to see what everyone thinks if you are friends with any neighbors or on a platform like NextDoor or wherever your community offers a networking/communication opportunity.