Many townhome communities carry a master insurance policy on the exterior of the shared structure resulting in an interior, or walls in, condo policy to be carried by the homeowner. In southeastern North Carolina the wind rating keeps climbing increasing the costs of that master policy leaving Homeowners Associations scrambling to come up with funds to pay for it and homeowners across each community frustrated with the changes being out of their control.
The idea of buying into a planned community is something that has appeal for those on a fixed income, retired, or simply just want a low maintenance lifestyle, but that appeal quickly disappears when the rising costs no longer make it affordable and homeowners feel powerless against the change.
Change can occur if a vote takes place with all the homeowners within the community to amend the bylines an switch from a master policy to individual homeowners policies. The rising costs of the master policy can be nixed and each individual homeowner would be able to take advantage of cost saving discounts that are available on a standard homeowners policy.
Dear HOA Board and Homeowners,
I am writing to you today to express my concern about the rising cost of townhouse insurance. As you know, our insurance premiums have been increasing steadily in recent years, and I believe that it is time for us to consider an alternative solution.
I believe that we would be better off if we each paid our own homeowners’ insurance. This is known as an HO3 homeowners insurance, and it is a common practice in many other communities. Each homeowner would be responsible for the insurance pertaining to their townhome and in doing so would allow for discounts that carriers provide like pay in full, alarm, golden age, etc. Several of our neighbors are on fixed incomes and the fluctuation of insurance has become strenuous on the purse strings. We do live in a coastal region, and the cost of insurance is going up nationwide, but I do believe making the switch to a HO3 policy from the HO6 policy would provide each townhome owner with the ability to lower their total insurance costs for the year.
I understand that there are some concerns about this approach. For example, some people worry that not all homeowners will purchase insurance, or that they will not pay their premiums. However, I believe that these concerns can be addressed. For example, we could require that all homeowners name the HOA as an additional insured, and we could also impose penalties for non-payment of premiums.
I believe that an HO3 plan would be a better solution for our community for several reasons. First, it would give us more control over our insurance costs. Second, it would allow us to take advantage of individual discounts. Third, it would be more efficient, as we would not have to go through the HOA to file claims.
I urge you to consider this option and to take steps to implement it. I believe that it would be a good move for our community, and it would help to keep our insurance costs down.
Thank you for your time and consideration.
Sincerely,
Homeowner
1601 College Rd ste 207
Wilmington, NC 28403