This article was authored by Chase Hudson, CIRMS, CRIS, CISR, EBP and first appeared on Quorom Magazine, the award-winning premier publication of the Washington Metropolitan Chapter Community Associations Institute.
While the property insurance market appears to be stabilizing in 2026, the effects of the recent hard market still linger. Over the past five years, community associations have faced significant challenges surrounding rising premiums, stricter underwriting, and reduced carrier appetite. Although global catastrophic losses have certainly impacted the broader market, within the community association space, aging building systems (and the losses stemming from them) have played a major role in underwriting decisions.
"Deferred maintenance is no longer simply a budgeting concern. It is an insurability concern."
Several building components have emerged as consistent drivers of insurance outcomes: roofing systems, aluminum wiring, Federal Pacific Stab-Lok electrical panels, and polybutylene plumbing. In many cases, carriers now require these systems to be updated before offering competitive terms, or before offering coverage at all. While these are not the only ageing infrastructure concerns communities face, they are among the most consistently scrutinized by insurance companies.
These upgrades are not always inexpensive or quick to fix. However, understanding why they matter and how to address them strategically can significantly improve long-term premium stability and market competitiveness.
Roofing
For condominium associations, whether roof maintenance falls to the unit owner or the association, insuring the roof typically falls under the master policy. As a result, roof age is one of the first items underwriters evaluate.
If carriers are willing to offer terms on older roofs, coverage is often limited. Policies may include higher Wind & Hail deductibles or restrict settlements to Actual Cash Value rather than Replacement Cost. The difference can create substantial out-of-pocket exposure after a loss.
Communities should follow their reserve studies and establish a disciplined roof replacement schedule. Annual or bi-annual inspections can help identify deterioration early and demonstrate proactive maintenance to underwriters.
In townhome-style condominiums where roof replacement is the unit owner’s responsibility, boards should consult association counsel regarding enforcement options. Maintaining a roof replacement log and issuing annual notices to owners whose roofs are beyond useful life can help protect the insurability of the master policy.
Aluminum Wiring
Installed primarily between the 1960s and 1980s, aluminum wiring was originally used as a cost-saving alternative to copper. However, aluminum expands and contracts more than copper, which can lead to loose connections, overheating, and increased fire risk.
From an insurance standpoint, aluminum wiring is one of the most challenging legacy systems.
One client experienced a building fire and later discovered all buildings contained older aluminum wiring. At renewal, no admitted carriers offered terms, and only limited non-admitted options were available. The result was a property premium increase exceeding 600 percent.
The long-term solution is full replacement, which maximizes carrier interest and pricing stability. In this case, the community replaced wiring in phases, and within one year of substantial completion, premiums were significantly reduced.
Some communities choose "pig-tailing," which involves connecting short copper segments to aluminum wiring to reduce fire risk. While this may improve safety, not all carriers accept it as a permanent solution. Boards should consult their attorney, broker, and a licensed electrician before determining the best course of action.
Federal Pacific Stab-lok Panels
Federal Pacific Stab-Lok breakers, commonly installed from the 1960s through the 1980s, have been widely scrutinized due to documented failure-to-trip concerns. A breaker that fails to trip during a surge can significantly increase fire risk.
Today, most carriers require confirmation that these panels have been replaced. If present, associations should work with licensed electricians to develop a replacement plan. In communities where panels are individually owned, boards should consult counsel on enforcement authority and consider coordinating bulk replacement programs to reduce overall cost.
Polybutylene Piping
Polybutylene piping, used extensively from the 1970s through the 1990s, was marketed as a cost-effective plumbing solution. Over time, however, it became associated with sudden failures and widespread water damage.
Water losses are among the most frequent and expensive claims affecting community associations. Buildings with polybutylene plumbing often face higher deductibles, restricted terms, or limited carrier options.
The most effective solution is full system replacement. While expensive, proactive replacement significantly reduces the likelihood of catastrophic multi-unit water losses and improves underwriting perception.
Modernizing aging infrastructure is not simply about aesthetics or code compliance. It is about protecting residents, preserving property values, and maintaining long-term insurability. Communities that address these older systems proactively place themselves in a stronger negotiating position with carriers and reduce the likelihood of destabilizing premium increases in the future.
