Hi Neighbors. You’ll recall that, in May of last year we switched our commercial HOA insurance policy from Nationwide to State Farm.
Debbie just received the new annual premium amount from State Farm for the upcoming renewal, May 2024 to May 2025. The premium is increasing 4%, or $312, from $7,481 to $7,793.
I think this is a reasonable increase, especially in light of the overall insurance marketplace, which is seeing huge inflationary increases. (It’s also reassuring that the first yearly increase we’ve seen from State Farm is only 4%, contrasted with Nationwide, which would often hit us with double digit increases, and every April I had to negotiate a more reasonable premium with our former agent Tom!)
Last year, in anticipation of increases in expenses, we raised our quarterly HOA dues amount by $50 per unit, which comes to a total increase in HOA revenue of $2,000 annually. So far this year, we’ve seen increases in annual expenses (going forward) of $540 for the landscapers, plus this $312 for insurance (total = $852). So we continue to be in good financial position regarding the current dues amount.
Our State Farm agent Johnny Spillman just sent me an updated policy document, which I’ve attached. It includes the address correction (from “100 Arbutus Place” to “100-109 Arbutus Place”) that I requested, and Johnny input, on Jan. 30. For some reason the version Debbie received didn’t have this change, but a revised version is being sent to her.
Attachment:
May 2024 State Farm Insurance The Woods at Laurel Hill Renewal with udpated address.pdf
Description: Adobe PDF document
Begin forwarded message:
From: Charles Baskinger <cbaskinger@xxxxxxxxx>
Subject: Re: Woods - State Farm - policy renewal for May 15, 2024 to May 15, 2025
Date: April 9, 2024 at 9:39:39 AM EDT
To: Debbie Clayton <bottom.line@xxxxxxxxxxxxxx>
Hi Debbie. Thanks for letting me know. I just sent the State Farm agent Johnny a reminder to get the address in the policy corrected.
I think a 4% increase is reasonable, so the monthly bill after renewal is OK to pay. I’ll let the other homeowners know, once I get confirmation on the address correction from Johnny.
Charles Baskingercbaskinger@xxxxxxxxx
On Apr 9, 2024, at 7:52 AM, <bottom.line@xxxxxxxxxxxxxx> <bottom.line@xxxxxxxxxxxxxx> wrote:
Charles: Attached is the renewal for State Farm (May 15, 2024-May 15, 2025). Premium is $7,793. Last year was $7,481 which is a $312 increase (4.17%). I compared the two policies, and it doesn’t look like anything changed (other than the price). In your e-mail of 2/29/24, you had asked the agent if the policy had been updated to read "100-109 Arbutus Place”. I don’t know if he responded to you, but the property is still listed as 100 Arbutus on the renewal. Not sure that matters or not. I will assume this is okay to pay (when the monthly bills come in-starting in May) unless you tell me otherwise. Thanks, Debbie ClaytonBottom Line Business Solutions LLC7160 Virginia Lamm DriveGraham, NC 27253336-525-2274 (office) / 919-423-9065 (cell)bottom.line@xxxxxxxxxxxxxx <StateFarmInsPolicy-May2024-May2025.pdf>
