We surveyed our COA customer base and asked how much of their budget goes to covering insurance costs. The survey showed that condo associations spend as much as 45% of their budget on covering insurance costs and that smaller condo associations have the most to save by cutting their insurance expenses.
- Condo associations with 3 - 6 units spend as much as 45% of their budget on insurance
- By switching to a different carrier, you can save hundreds of dollars yearly
How much can you save in HOA fees by switching insurance carriers?
The COAs surveyed had an average budget of around $4,800 and insurance alone was as much as $2,160. By switching to Honeycomb, they saved on average 40% on their insurance costs, equalling $800 dollars less in yearly HOA fees:
|After Switching to Honeycomb
|Maintenance and Repairs
|Administration and reserves
Honeycomb specializes in insurance for condo associations. Because it’s a niche product, we are able to offer a customized product for significantly less than our competitors. Get a quote here and see how much your HOA or COA can save on insurance by switching to Honeycomb.
Why are HOA fees going up?
There could be several reasons why your HOA fees have gone up, but unless you’ve been doing any major renovations or upgrades recently, an increase in the fees is most likely due to the unusually high inflation rate in recent years. This has impacted the cost of anything from consumer good to insurance premiums, and while the inflation rate is on it’s way down, it’s still a lot higher than it was just a few years ago.
Find more statistics at Statista
What’s the standard monthly amount of fees?
HOA fees will vary significantly depending on a variety of factors such as location, the size of the property, the age of the property, and the amenities provided. According to Ruby Home, the monthly mean per unit in New York city is around $600, while in Houston it’s around $100.
What HOA fees usually cover:
- Utilities: water, electricity, and gas for common areas
- Services: landscaping and cleaning of common areas
- Insurance: liability and property insurance for common areas
- Repairs and Maintenance: repairs to common areas and equipment maintenance
- Reserve Fund: funds set aside for long-term capital expenses
Other ways to reduce your HOA fees
Switching insurance carriers can be a realtively simple way to significantly lower your HOA fees. If you want to try to reduce your association fees even further, there are a few strategies that's worth considering:
- Renegotiate contracts and shop around for other vendors: Can your current service provider give you a better deal, or are there other companies that can offer the same for less?
- Encourage energy conservation: Encourage your condo associations members to conserve energy by turning off lights when not in use, using energy-efficient appliances, and upgrading to energy-efficient light bulbs and other eco-friendly property solutions
- Volunteering: See if some of the paid services can be carried out by having the residents get involved instead
- Cut unnecessary expenses: Look for areas where expenses can be cut without affecting the quality of services provided
- Utilize technology: Use technology to streamline communication and reduce administrative expenses, such as online portals for paying HOA fees and submitting maintenance requests.