When was the last time your client’s loss runs sparked a meaningful financial conversation? If your answer is “never” or “rarely,” you’re not alone. Many boards treat loss runs as paperwork to file away after renewal, rather than as tools that can guide future planning.
But for insurance agents, loss runs offer much more. When used strategically, these reports reveal how a homeowners association (HOA) responds to risk. That insight can shape stronger insurance strategies and help boards make better-informed financial decisions.
Loss runs don’t replace financial reports, but they provide a valuable window into how claims patterns may affect future premiums and coverage terms. When left unaddressed, recurring claims or trends can strain an association’s finances. That makes loss runs a practical entry point for agents who want to add value and build trust.
Why Do Loss Runs Matter for HOAs?
Every claim tells a story. A slip-and-fall or plumbing repair may seem minor on its own, but patterns can emerge over time. These trends can quietly increase premiums or expose underinsured risks.
When reviewing HOA loss runs, ask questions like:
- Are the same types of claims repeating?
- Are total payouts increasing, holding steady, or declining?
- Do the claims align with the HOA’s reserves and financial goals?
Let’s say a community pool records three slip-and-fall incidents over two summers. Each claim is resolved, but no safety improvements are made. The association is left with rising premiums and no clear understanding of why.
Had the loss data been reviewed more closely, an agent could have advised the board to add non-slip surfaces and signage, potentially preventing future losses.
According to the National Safety Council, about 16 in every 100 people were injured in home and community settings in 2023. Of those injuries, 26% were due to falls. While not HOA-specific, this statistic reinforces how frequently fall-related claims can appear in community loss histories.
Loss run reviews help agents catch trends early, before they drain reserves or affect renewal terms.
Connecting Loss Runs to Financial Stability
Associations with favorable claim histories often position themselves for more competitive underwriting results. That can mean better premiums, deductibles, or coverage conditions. Of course, underwriters also weigh factors such as property age, location, and governance practices.
This relationship is where loss runs intersect directly with HOA financial management.
Revisiting the pool example: If the board had added non-slip surfaces and better signage after the second claim, they may have prevented the third. With fewer claims, the association could have qualified for better rates or avoided restrictive exclusions.
Beyond insurance costs, repeated claims often point to deeper problems. These issues may include deferred maintenance, poor governance, or overlooked safety issues. Loss runs allow agents to guide boards toward smarter decisions without offering formal financial advice. These are risk-driven conversations, not budget recommendations.
Using Loss Runs To Strengthen HOA Programs
Loss runs don’t just show what went wrong. They also provide a basis for improving an HOA’s insurance program.
Here are ways to connect claims history to coverage conversations.
Directors & Officers (D&O) Liability
If a board has a history of governance disputes or litigation, it’s worth reviewing D&O coverage limits and endorsements to ensure they remain adequate.
Crime Insurance
If the reports show incidents like theft, forgery, or embezzlement, it’s time to assess whether the association’s crime policy provides sufficient protection.
Excess Liability Coverage
A history of high-value general liability claims or settlement costs may justify a conversation around excess liability protection.
These policies are not one-size-fits-all, but they are common ways to align past claims data with smarter insurance decisions.
Building Stronger HOA Programs With Kevin Davis Insurance Services
When reviewed intentionally, loss runs support an association’s financial well-being and strengthen an agent’s advisory role.
At Kevin Davis Insurance Services, we offer specialized protection built specifically for HOAs and community associations. From D&O liability to excess and crime coverage, our products are designed around real claims, real risks, and real communities.
More importantly, we help our agents turn loss run data into informed strategies that protect both their clients and their reputations.
FAQs on Loss Runs and HOAs
What are loss runs?
Loss runs are insurance reports that summarize an association’s claim history. They show what claims occurred, when, and for how much.
How do loss runs affect premiums?
Clean loss histories often support more competitive underwriting outcomes. Frequent or high-dollar claims may increase premiums or limit coverage options.
What happens when an HOA runs out of money?
A shortfall can lead to delayed repairs, increased special assessments, or even litigation. While loss runs cannot measure overall solvency, they can highlight claims patterns that may contribute to financial stress.
How to analyze HOA financials with loss runs?
Use loss runs to track claims over time. Then compare those trends to reserve balances, maintenance needs, and budget priorities. That insight helps boards integrate risk awareness into long-term planning.
About Kevin Davis Insurance Services
For over 35 years, Kevin Davis Insurance Services has built an impressive reputation as a strong wholesale broker offering insurance products for the community association industry. Our president Kevin Davis and his team take pride in offering committed services to the community association market and providing them with unparalleled access to high-quality coverage, competitive premiums, superior markets, and detailed customer service. To learn more about the coverage we offer, contact us toll-free at (855)-790-7393 to speak with one of our representatives.