condo-reserves

Insurance companies price risk. A well-maintained building with adequate reserves is less risky than one that defers maintenance and lurches from crisis to crisis.

The connection works like this: buildings that maintain their capital assets experience fewer catastrophic failures. Fewer failures mean fewer claims. A clean claims history leads to better rates at renewal—for both the association's master policy and individual unit owners' HO-6 policies.

The inverse is also true. Deferred maintenance leads to preventable failures. Preventable failures become claims. Claims history follows your building for years, driving up premiums for everyone.

Well-funded reserves give you leverage in insurance conversations:

Demonstrate proactive management. A current reserve study and strong funding percentage show insurers you're not waiting for things to break.
Document your maintenance. Records of regular inspections, timely repairs, and capital improvements build a picture of a well-run building.
Point to your claims history. When your proactive approach results in fewer claims, that track record becomes a negotiating asset.

Insurance savings compound over time. Lower premiums year after year add up—and those savings benefit every owner in the building.