Blog

What Insurance Carriers See That Perhaps Your Funding Plan Doesn’t Take Into Consideration

By Charlotte Allen, CIRMS

This article first appeared in the Communicator Magazine, Summer 2026 Issue.

The reserve study is something well- intentioned community associations take seriously. It gets updated every three years, disclosed to homeowners annually, drives budgets, shapes special assessment conversations and gives boards and community members a sense of security. And, I’m here to tell you it often has a blind spot, one that is unexpectedly impacting communities.

The Reserve Study Does What It’s Supposed to Do

Let me be clear, I am not here to criticize reserve studies. They are legally required under our Civil Code for very good reasons. A well-prepared reserve study identifies major components of your association’s common areas and estimates their remaining useful life, develops replacement and repair cost estimates and lays out a plan so that the association isn’t blindsided by a...