Offset Risk Exposure Blog

Offset Risk Exposure: Why Insurance Experts Should Champion HOA Financing

If you’re underwriting condos or writing policies for high-rise associations in Florida, you already know: Senate Bill 4D (SB 4-D) has changed everything.

Deferred maintenance is no longer just a liability it’s a regulatory crisis. Structural issues like spalling, stucco cracks, and post-tension failure are triggering coverage restrictions, non-renewals, and midterm cancellations.

But here’s the rub: even when engineers issue mandatory repair reports, most HOAs still don’t move. Why?

They don’t have the reserves. And they’re terrified of triggering massive HOA special assessments or special assessment votes that homeowners can’t afford.

This is where you come in.

When you guide your HOA clients toward HOA loans, association loans, or condo association loans, you: - Protect the asset - Make your risk department happy - Help the board comply with the law - Avoid catastrophic losses that impact your loss ratio

Why Insurance Professionals Need to Talk About HOA Financing

Every time an HOA delays structural work, you’re sitting on a ticking time bomb: - Insurers are requiring SIRS reports and reserve studies - Aging buildings have little-to-no reserves - Boards can’t raise $1M+ without special assessments - Special assessments fuel delinquency rates - Delinquencies trigger cash flow issues and more insurance risk

If your insured can’t fund the repairs, you lose the account and carry the exposure.

The Solution: HOA Project Financing and Reserve Funding Loans

By working with a partner who provides HOA project financing and reserve funding loans, you give your clients options: - Finance 100% of concrete restoration, balconies, garages, etc. - Comply with Senate Bill 4D (SB 4-D) - Avoid HOA special assessments and payment defaults - Structure payments over 15–25 years with no personal guarantees

This keeps boards compliant, buildings safe, and policies in force.

Case Study: $3M Restoration Job That Saved a Policy

A 200-unit building in Broward County needed $3M in structural concrete repairs. - Without funding: 80% of owners said they couldn’t afford a $15,000 special assessment - Insurance provider planned to cancel if work wasn’t scheduled in 90 days

With HOA financing: - Monthly cost was $150/unit - Vote passed easily - Work scheduled - Policy renewed

What Insurance Professionals Can Say to Clients

“We understand your reserve study identified urgent repairs, and SB 4-D compliance is looming. If raising a special assessment isn’t realistic, we can connect you with financing options specifically for associations. These solutions fund 100% of the project and break it into manageable monthly payments, helping you stay insured, compliant, and stable.”

Support for Your Agency or Brokerage

We provide: - HOA financing FAQs and brochures for your clients - Reserve funding loan calculators for policyholders - Co-branded referral materials - Webinars for your agents on SB 4-D and HOA project financing

When your clients win, you retain business and reduce portfolio risk.

✅ Contact us to get the HOA Project Financing Toolkit for Insurance Professionals.

Visit HOALoans.com to get started.