What’s With The Insurance Industry?

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The Champlain Towers South condominium in Surfside, Florida, partially collapsed on June 24, 2021, at approximately 1:30 a.m. EDT. The collapse resulted in the deaths of 98 people, according to the National Institute of Standards and Technology (NIST).

This triggered the start in the rise of insurance premiums in homeowners associations as well as all other insurance. On top on that, wildfires in California and hurricanes in Florida did not help curb the costs.

In the past few years, the insurance industry has faced a significant increase in billion-dollar claims, primarily driven by natural catastrophes. Specifically, in the US, there were 115 billion-dollar weather and climate disasters between 2020 and 2024, resulting in 2,520 deaths, according to the NOAA National Centers for Environmental Information (NCEI). In 2024 alone, there were 27 such disasters, causing 568 deaths, according to the NOAA National Centers for Environmental Information (NCEI).

Global insured losses from natural disasters reached at least $100 billion in the first half of 2025, making it the second-highest total on record, according to Risk & Insurance.

The US has been heavily impacted, with numerous billion-dollar weather and climate disasters. In 2024, 27 such disasters resulted in 568 deaths, according to the NOAA National Centers for Environmental Information (NCEI).

Hurricanes, severe thunderstorms, and floods have been major drivers of these losses. For example, Hurricane Ian in 2022 caused $54 billion in insured losses, according to www.iii.org

Insured losses from natural catastrophes are trending towards $145 billion in 2025, and there’s a 1-in-10 probability that losses could exceed $300 billion in a “peak loss” year, according to Swiss Re.

The increasing frequency and severity of these events are leading to higher payouts, increased reinsurance costs, and challenges in obtaining insurance coverage, particularly in vulnerable areas, according to The Zebra.

Wildwood insurance costs have risen from around $17,000 a year in the late 1990’s, to over $70,000 a year today. This year our insurance cost went up about $14,000 a year. This is equivalent to $7.48 a month in dues.

From 2015 to 2021 our monthly dues went up only $5. From 2022 to 2025 our monthly dues went up $31.50 due mostly to insurance cost and building maintenance (our buildings are over 50 years old).

The Board of Directors work hard to keep costs down as low as possible. Unfortunately, there are costs that we cannot control.

Here is what Jim Ruebsam from The Daniel & Henry Company says about The New Realities of Community Association Insurance Underwriting

What is a Reserve Fund

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Reserve FundMost homeowners associations have what is called a reserve fund. It is a fund where money is put away to cover major capital expenses.

Google AI explains it as follows;
An HOA reserve fund is a dedicated savings account that an Homeowners Association (HOA) establishes to cover major, non-recurring expenses like roof replacements, repaving, or pool repairs. It’s essentially a long-term savings plan to avoid special assessments or significant dues increases when these large-scale projects arise. 

So, how do you know how much to put in your reserve fund? The homeowners association gets what is called a reserve study. There are many reserve study companies out there. You hire one, they gather all the information as to what the homeowners association is responsible for, give each item a lifespan, determine what it would cost to replace each item, and then tell you how much you need in your reserve fund. This prevents not having the money when capital items need to be replaced.

Generally, homeowners associations have two bank accounts. One is the operating account, used for day to day expenses. The second one is the reserve fund account.  Normally, capital expense items are not paid for out of the operating account.

This prevents special assessments, and huge monthly dues raising.

Here is what Community Associations Institute says about reserve funds;
https://www.caionline.org/advocacy/public-policies/reserve-study-and-funding/

Indianapolis Ordinances For Dogs and Cats

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Sec. 531-203. – Dog and cat curbing requirements.
(a)

No person knowingly shall allow a dog or cat which is kept by that person to defecate or urinate on a public street, byway, municipally owned or public land or building, or upon private property, in the city without the prior permission of the owner of such property; however, if an animal defecates on property described in this subsection, the animal’s owner or keeper promptly shall remove any feces to a waste container, or otherwise dispose of such material in a manner inoffensive to reasonable public sensibilities.
(b)
Notwithstanding the provisions of subsection (a) of this section, the owner of a dog serving a vision-impaired person in an auxiliary ocular capacity or in any capacity to assist such person with a physical impairment may permit such dog to relieve itself on ground situated outside of pedestrian or vehicular traffic ways, and is relieved of the requirement to remove any feces to the extent such requirement is impractical for a person of such impairment.
(c)
No person knowingly shall allow his or her dog or cat to disperse waste material placed for public or private collection upon any public street, or byway or right-of-way, or any municipally owned or public land or building, or upon private property.
(d)
A person who violates any provision of this section shall be punishable as provided in section 103-3 of this Code; provided, however, a fine imposed for any such violation shall not be less than twenty-five dollars ($25.00).

Sec. 531-102. – Animals at large prohibited; penalties.
(a)

An owner or keeper of an animal commits a violation of the Code if that animal is at large in the city.
(b)
Except as provided in subsection (c) of this section, section 531-501 or section 531-727, the first violation in any twelve-month period shall be subject to an admission of violation and payment of the designated civil penalty through the ordinance violations bureau in accordance with Chapter 103 of the Code. All subsequent violations in a twelve-month period are subject to the enforcement procedures provided in section 103-3 of the Code and a fine of not less than one hundred dollars ($100.00) per violation.
(c)
If, while the animal is at large in violation of this section it:
(1)
Attacks another animal; or
(2)
Chases or approaches a person in a menacing fashion or apparent attitude of attack;
then the violation shall be subject to the enforcement procedures and penalties provided in section 103-3 of the Code, and the fine imposed shall not be less than two hundred and fifty dollars ($250.00), or five hundred dollars ($500.00) if another animal or person is injured as a result of the animal’s actions. If the violation results in serious injury to any person, the court upon request shall order the animal forfeited and/or destroyed.

The cities defination of at large follows: “At large means being loose and free roaming, not being on a leash and under the control of a competent person, or any portion of the animal’s body not being confined within a pen, corral, yard, cage, house, vehicle, or other secure enclosure or structure or by other means that prevents escape.”