Just a quick update on the insurance crisis that is affecting California condo projects.
The CA Dept of Insurance recently increased “Fair Plan” commercial coverage limits for condo projects, farms and businesses to 20 MIL.
Will it help? The short answer is “a little”, for smaller projects where insurance companies wont insure to Fannie Mae requirements.
The problem real is Fannie Mae requires 100% replacement and build cost of an the entire community, meaning all units and common area, as if the entire project is destroyed.
Insurance companies will not do this because the probability of a total loss is unlikely, so forcing a HOA to take insurance they don’t need is questionable.
The bottom line is it’s going to get worse before it gets better.
Coast 2 Coast Funding continues to lend in HOA projects that are under-insured, so feel free to pass my name along to anyone in need or fill out the form to the right.