California HOA insurance premiums surge: Holly Maddalena on what boards need to know

Southern California’s HOA landscape is shifting fast, and nowhere is that more evident than in the skyrocketing cost of insurance premiums. Communities across Orange County are feeling the financial strain as properties are increasingly designated high-risk fire zones.

To understand what’s driving these changes and how communities can stay ahead, we turned to an industry leader who has been navigating this landscape for two decades: Holly Maddalena, senior vice president at FirstService Residential, overseeing Orange County community management.

With 20 years in the HOA industry and 13 years with FirstService, Holly brings deep experience, a grounded California perspective, and a people-first approach to one of the most complex challenges facing community associations today.
 

California’s changing risk landscape

From Rancho Santa Margarita, Newport Coast, Laguna Niguel, San Clemente, and Brea are facing a difficult reality: insurance premiums aren’t just rising, they’re surging at unprecedented levels.

Holly has witnessed the shift up close.

"Our biggest challenge has been the dramatic spike in premiums tied to high‑risk fire zone designations. It’s a statewide issue, and Orange County is not immune."

—Holly Maddalena, senior vice president at FirstService Residential
  

She points to one community that illustrates the scale of the problem:

"A condo association we manage in Rancho Santa Margarita saw its premium jump from $49,000 to $250,000 at renewal. No HOA can absorb an increase like that without extremely difficult financial decisions."

And the trend is widespread. According to the Community Associations Institute (CAI), 91% of community associations nationwide have experienced premium increases, and 17% have faced hikes over 100%. Many are also losing access to traditional carriers and being forced into far more expensive surplus‑lines markets.
 

Why California communities are hit especially hard

A perfect storm is driving California’s insurance crisis: increasing wildfire activity, climate volatility, rising construction costs, and major insurers withdrawing from the state. The 2025 CAL FIRE Fire Hazard Severity Zone updates expanded “very high” risk classifications throughout Southern California sweeping even suburban, urban-adjacent neighborhoods into high-risk categories.
For HOAs, the impact is immediate.

"When your community is labeled high risk, coverage isn’t optional. Boards are required to maintain adequate insurance, and when premiums jump, there’s no avoiding the cost. If those bills aren’t paid, the entire community is exposed, and homeowners ultimately feel the impact."

How FirstService helps communities navigate massive HOA insurance premium increases

The Orange County team led their clients through difficult renewal cycles in California, particularly in communities hit with six-figure premium spikes. What differentiates FirstService Residential, she says, is a combination of market expertise, strong internal support, and specialized insurance resources through FirstService Financial, Inc.
 

Aggressive bidding and creative solutions

When the condo community in Rancho Santa Margarita received its $250,000 renewal quote, Holly’s team acted immediately.

"FirstService Financial’s insurance specialists, led by Jamie George, partnered with our management team to go out for aggressive bids. We brought the premium down from $250,000 to $190,000. We didn’t leave a single stone unturned."

Holly notes that FirstService’s partnership with FirstService Financial gives clients a real competitive edge.

"Our use of FirstService Financial is unique in this market. We’ve tested other solutions, including group policies, and some come with restrictions on refinancing or sales. That’s not in our clients’ best interests. Our solutions consistently come out on top."

Supporting boards with financial strategies

When premiums spike mid‑budget cycle, boards typically have three paths:

1. Special assessments
    
2. Monthly fee increases
    
3. Financing a portion of the premium

But Holly stresses that even the smartest financial strategy fails without clear communication.

"People get upset when they’re left in the dark. When you explain with empathy that the state designated the community high‑risk and premiums tripled—they may not like the news, but they understand it."

One board member took it upon herself to address homeowners directly.

She wrote,

"I’m frustrated too, but here’s why this happened."

Between her message and our outreach, we didn’t receive a single complaint. A homeowner even thanked the board for being so transparent throughout the process.
 

The FirstService advantage: support, consistency, and leadership

Holly spent seven years in community management at another company before joining FirstService. The contrast, she says, couldn’t be clearer.

FirstService, she explains, operates differently:

• Regional Directors don’t manage accounts, allowing them to focus on leading people, strengthening board relationships, and providing high-level guidance.
   
• Tools like FirstService Residential Connect™ and HODA® give board members and residents easy access to the information they need, reducing day‑to‑day requests and allowing managers to focus on higher‑level tasks.
   
• Standardized documentation and processes ensure smooth transitions when staffing changes occur.
   
• Managers have access to peer expertise nationwide, learning from every type of community from small neighborhoods to master‑planned cities like Ladera Ranch.

"The support teams here are unlike anything else in the industry. Our structure empowers managers to lean into challenges instead of facing them alone."

Communication, empathy, and education as core values

In California, where transparency is a top concern for communities switching property management companies, Holly’s approach is rooted in proactive communication.

"We train managers not to shy away from tough conversations. The more you educate homeowners, the more they will be understanding."

Her team uses town halls, homeowner Q&A sessions, and expert-led discussions to keep residents informed.

And at the heart of their approach? Empathy.

"If someone is upset, it’s rarely personal. It’s the position you’re in. We coach managers to listen, de-escalate, and educate. Leaning into those moments builds influence and more functional, connected communities."

A leader shaped by California

Holly’s roots in California run deep, from growing up in Riverside to raising her daughter near the beaches where she is an all-star cheerleader. She spends vacations camping in the Sierra Nevada and riding dirt bikes in the high desert.

Those connections, she says, shape her purpose.

"These communities aren’t just properties. They’re people’s homes, their investments, their everyday lives. Helping them navigate challenges is why I love what I do."

Leading through uncertainty with clarity and support

As California’s insurance landscape grows more complex, boards need more than a property management company. They need a partner with expertise, transparency, and unwavering support. Holly Maddalena and her team at FirstService Residential are helping communities face unprecedented pressures with clear communication, strategic problem‑solving, and a deep understanding of what makes California communities unique.

In a market defined by risk, uncertainty, and rapid change, the right partnership can make all the difference.

For more information, contact our team today.

This information is provided for general informational purposes only and is not intended to constitute, and should not be relied upon as, legal, regulatory, financial, or operational advice, or as a representation or guarantee of any specific services, capabilities, or outcomes. Property management needs, regulatory requirements, market conditions, and available services vary by jurisdiction, property type, and community. FirstService Residential provides services through locally based affiliates and associates, and services and results may vary by community, region, contractual terms, and applicable law.