New Data From Coverwatch and Y Combinator-Backed Assembly HOA Reveals Escalating Costs, Shrinking Coverage, and a Rapidly Contracting Insurance Market for Los Angeles-Area HOAs
LA metro HOAs are paying more for policies that cover less, while being asked to assume greater financial risk
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SAN FRANCISCO, Oct. 15, 2026 (GLOBE NEWSWIRE) — Coverwatch, disrupting the legacy commercial insurance industry with the best AI-native insurance broker for evaluating risk, closing coverage gaps, and lowering premiums, announced today the results of a new, comprehensive study on Los Angeles-area Homeowner Association (HOA) insurance policies, conducted in partnership with Assembly HOA, the Y Combinator-backed, AI-native HOA management company.
Coverwatch’s analysis of more than five years and 67 Los Angeles-area HOAs representing 3,000 units reveals that HOA insurance is becoming more expensive, providing less coverage, and shifting greater financial responsibility onto property owners as insurers continue to leave the market.
Conducted in partnership with Assembly HOA, the study analyzed more than 900 files covering HOA communities across California, including Greater Los Angeles and the San Francisco Bay Area. Assembly sets a new standard for HOA management with an integrated approach making management seamless and stress-free while giving boards the visibility needed to identify rising premiums, higher deductibles, and new exclusions before they become costly surprises.
The dataset, composed of individual policy renewals between 2021 and 2026, documents every renewal separately and links every finding to the underlying policy data, providing a transparent view of how the market changed during the time period.
“Our analysis showed a troubling and consistent pattern across California’s HOA insurance market: associations are paying substantially more for insurance that covers less,” said Miquel Llobet, Founder and CEO of Coverwatch. “At the same time HOAs are taking on significantly greater financial risk in a marketplace where fewer insurers are willing to provide coverage.”
Top findings from the Coverwatch analysis:
Premiums Continue to Rise
Since 2021, the analysis identified 41 with HOAs with clean renewals – defined as the same policy renewing with the same carrier in consecutive years. Among those renewals:
- 68 percent saw premiums increase, including 10 percent who saw premiums rise by more than 25 percent in a single year.
- 29 percent saw premiums unchanged.
One HOA saw annual premiums climb from $6,637 to $21,599 over seven years.
Coverage Is Shrinking
In 80 percent of cases, the HOA policy renewed with the same carrier but returned with new coverage exclusions – for example, earthquake damage, water damage, mold, abuse claims, and per- and polyfluoroalkyl substances (PFAS), commonly known as “forever chemicals.”
PFAS exclusions have emerged as the fastest-growing trend. Virtually absent before 2024, they appeared in 30 percent of HOA policy renewals evaluated as part of the study by 2026.
More Financial Risk is Being Shifted to HOAs
Deductibles are also increasing, leaving associations responsible for larger losses before insurance coverage begins.
From 2021-2026, the median earthquake deductible for policies in the data set grew from $15,000 to $25,000, and the median water damage deductible grew from $10,000 to $25,000. Other deductibles grew by as much as 6x year/year before again declining.
One renewal policy made an HOA responsible for approximately $15 million in earthquake damage before its insurance policy pays a claim.
Allen Liou, CEO of Assembly HOA, noted, “Proactive management is more important than ever. At Assembly, we start the renewal process early, compare every proposal against the expiring policy, flag new exclusions and deductible increases, and work closely with brokers to secure stronger coverage at more competitive prices. This approach has helped the HOAs we manage reduce premiums while avoiding coverage gaps that might otherwise surface only when a claim is filed.”
About Assembly HOA
Assembly HOA is an AI-native HOA management company that helps boards take control of rising costs, stay ahead of maintenance, and get clear answers about their community’s finances. Assembly helps boards protect property values and keep their communities well run by combining experienced community managers with modern, transparent software. Boards work with Assembly to avoid surprise special assessments, keep reserves funded, get repairs done before small problems become expensive ones, and give homeowners confidence that their dues are being managed responsibly. Backed by Y Combinator, Assembly serves more than 100 HOAs across California. Learn more at assemblyhoa.com.
About Coverwatch
Coverwatch is disrupting the legacy commercial insurance industry with the best AI-native platform for evaluating risk, closing coverage gaps, and getting the best possible coverage at the right price. Unlike traditional brokers, who earn a commission tied to your premium, Coverwatch charges a flat fee, so it’s incented to find the best coverage for the price, not the highest price. That alignment is backed by AI automation that searches across 60+ carriers and crafts tailored quotes in 24 to 48 hours, passing the premium savings on to clients – 20-40 percent on average. The fast-growing company is backed by top investors including CoFound Partners and Restive. Learn more at coverwatch.com.
Media contact:
Michelle Faulkner
Big Swing
michelle@big-swing.com
617-510-6998
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