In her viral TikTok video, she explains that the HOA says the new insurance premium is due to be paid within three months.
“This envelope got me heated,” she captioned her video. But increases like this one are rarely without cause — as homeowners across the country are finding out.
Why this happened
In a follow-up video, Kailani (who does not provide her full name) explains that she and her husband have their own insurance for the interior of the condo. But the HOA covers the insurance for the condo’s exterior and shared spaces.
After a wildfire “eliminated” a town nearby (the location is undisclosed), she says that insurers re-assessed many townhomes and condos in the area. Kailani believes this is the reason for the severe premium increase.
But she’s not alone. One commenter wrote on her viral video: “Our insurance jumped 66% this year.”
Between May 2022 and May 2023, home insurance premiums across the country rose by an average of 21%, according to Policygenius. The insurance company says that the average increase was $244 per year, partially due to an increase in extreme weather, natural disasters, risk elevation and inflation.
Insurance premiums will keep going up
The premium increases may just keep coming due to the increased number of severe weather events. In 2023 alone, weather and climate disasters cost the U.S. $94.9 billion, according to the National Centers for Environmental Information.
Extreme weather also poses risk to the individual. A 2023 Federal Reserve report shows that 19% of Americans were financially impacted by natural disasters, experiencing property damage, work disruption or income loss, temporary evacuation and long-term displacement from the home.
Soon some folks may be out of an insurance policy and will have to seek coverage elsewhere. CNBC reported that several large insurers have pulled out of states, such as California and Florida, because they can’t keep up with the constant fires or flooding, respectively.
HOA fees are also on the rise
Some commenters told Kailani that she ought to leave the HOA-run building if they’re going to ask for such large increases — even if they are mandated by its insurance company.
