Hail Season and HOAs – Be Prepared

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Home Owner Associations should be prepared for the hail season.

With the summer weather bringing storms, hail is certainly on everyone’s mind. Colorado’s hail season runs from mid-April all the way through mid-September. According to the Rocky Mountain Insurance Information Association (RMIIA), “In the last 10 years, hailstorms have caused more than $5 billion in insured damage in Colorado.” In fact the RMIIA notes that, Colorado’s Front Range is actually located in the heart of “Hail Alley,” receiving some of the largest and most often occurring hail storms in North America.

Did you know that the largest hail on record in Colorado was actually the size of a grapefruit? That could definitely cause some damage!

How does hail effect HOAs?

For Warren Management’s HOAs, and those that insure the homes/units, the insurance companies tack on a 3-5% wind & hail deductible based on the value of the unit(s). This deductible can be very impacting to Associations! They generally end up having to charge a sizable special assessment to cover the wind/hail deductible when a roof is damaged.

Few associations set aside that amount of money “in case” a hail storm hits their community, making it a cost that hits suddenly and allows for a limited period of time for the owners to come up with the money. If possible, set aside savings for potential deductibles so you are not caught unawares if your property is damaged. Summer storms can bring much needed precipitation and they can be magnificent to watch, but everyone is safer when we plan ahead for them and are adequately prepared.

It’s important that after a hail storm you assess your property for damage, including your roof, patios, nearby trees or shrubbery as well as your car. Make sure you contact your insurance agent, most of our clients insure through CB Insurance, in a timely manner if you discover your property has been damaged, and then you can begin the process of finding a repair company.

Do you have questions about community association management or how to set up your HOA for things like hail season? We are the experts – contact us today.