Best practices to mitigate risk
As industry expectations continue to rise, boards can position their communities for greater financial stability and resilience against external risks.
1. Prioritize structural and safetyrelated projects – Addressing high-risk projects, such as roofs, waterproofing systems, or structural concrete, demonstrates responsible stewardship and mitigates the risk of insurance and loan eligibility concerns.
2. Maintain adequate reserve funding and keep your reserve study current – Proper funding reduces the risk of future deferred maintenance and signals financial preparedness. Associations should update their reserve studies at least every three years, or sooner if funding levels change significantly or if major projects are deferred or completed.
3. Leverage your reserve study partner for clarity and documentation – When questions arise, oftentimes, your provider can discuss insurance and mortgage-related concerns and provide documentation to assist with renewal and loan processing – keeping the community’ s insurance renewals and real estate transactions on track.
Insurance and lending trends will continue to evolve, driving the industry toward a more resilient future. An increased focus on structural integrity and reserves supports a more proactive approach to addressing building deterioration when issues are minor, rather than waiting until they become more complex and more costly to address. lastly, communities that take a disciplined approach to capital planning will be best positioned to maintain coverage at the most affordable rates, mitigate risks of loan eligibility, and support home values.
Matt Kuisle, PE, RS is the Southeast Regional Executive Director at Reserve Advisors. He can be reached at matt @ reserveadvisors. com.
38 community • June 2026 WWW. CAIWESTFlORIDA. ORg