Why boards should worry about resident insurance: An interview with Andrew Lester

Across North America, the backbone of every successful homeowners association (HOA), condominium, or co-op community is its board - a group of dedicated volunteers who step up to serve their neighbors. Board members aren’t just administrators; they’re stewards of their communities, responsible for spotting risks, seizing opportunities, and making decisions that protect property values and enhance the resident experience for everyone. Whether overseeing a high-rise in a bustling city, a sprawling suburban HOA, or a historic co-op, board members face a complex landscape of challenges.

One of the most overlooked risks in these communities is resident insurance. While it’s easy to focus on landscaping, amenities, or budget planning, the reality is that gaps in resident insurance can have far-reaching consequences. Boards must not only manage the association’s master policy but also consider how individual resident coverage - or lack thereof - can impact the entire community.
 

Expert insights on what boards should know about resident insurance

In this interview, Andrew Lester, president of FirstService Insurance Brokers, illustrates why boards should prioritize resident insurance and how a new resident insurance solution is helping communities address this critical issue.

1. Why should HOA, condominium, and co-op boards be concerned about resident insurance?

   "Boards are entrusted with the financial and operational well-being of their communities. When residents lack adequate insurance, it’s not just a personal issue, it can quickly become a community-wide problem. For example, in a high-rise condominium, a single water leak can damage multiple units and common areas. If the resident responsible is underinsured, the costs and delays can affect everyone, including the association’s finances.
   
   In HOAs and co-ops, property damage or liability events can lead to disputes, special assessments, and even legal action. Boards must be proactive in identifying these risks and ensuring residents understand the importance of proper coverage."
   
   Andrew Lester, president of FirstService Insurance Brokers
     

   To learn about the resident insurance program and get quotes, click here.
    

2. How does underinsurance among residents impact the community?

   "Underinsurance creates a domino effect that reaches far beyond the individual unit. Take a high-rise building: if a resident’s kitchen fire spreads, inadequate coverage can delay repairs and leave neighbors displaced. Similarly, consider a water leak between two units. If the responsible owner is underinsured, repairs can be delayed for everyone. In these cases, the expenses don’t fall under the building’s master policy deductible—they become direct out-of-pocket costs for the owners involved. When residents lack sufficient coverage, disputes often arise over who pays, repairs may be delayed, and strained relationships can develop between neighbors.
   
   At the community level, widespread underinsurance can drive up premiums and deductibles on the master policy, since insurers view the building as a higher risk. Associations may be forced to raise monthly fees or dip into reserves to cover uninsured losses in common areas. The result is a cycle of financial pressure, slower recovery after incidents, and reduced property values—all of which weaken the stability of the condominium community."

3. What are some common challenges residents face when shopping for insurance?

   "Insurance can be confusing. Residents in HOAs, condos, co-ops, and rentals often struggle to understand policy terms, coverage limits, and exclusions. Our research shows that 60% don’t realize they’re underinsured until they file a claim. With rising premiums and limited time to research options, it’s easy to settle for inadequate coverage.
   
   For example, a condo owner might assume their association’s policy covers more than it actually does, only to discover gaps in water damage, personal liability or contents coverage after an incident."

4. How can boards help residents overcome these challenges?

   "Education is key. Boards can host informational sessions, distribute resources, and encourage residents to review their policies regularly. Our new resident insurance solution was created to simplify this process.
   
   It offers a user-friendly platform where residents can compare quotes from top insurers, get expert advice, and find coverage tailored to their needs - whether they own, rent, or share ownership in a co-op. By making insurance accessible and transparent, boards empower residents to make informed decisions."

5. What types of incidents highlight the need for proper resident insurance?

   "We’ve seen everything from burst pipes in high-rise condos to wind damage in suburban HOAs. Without proper insurance, individuals may face significant out-of-pocket expenses, and the association may have to intervene, which can deplete reserves or lead to special assessments. Proper coverage ensures faster recovery, less disruption, and a smoother claims process for everyone involved."

6. How does resident insurance benefit the board and the association?

   "When residents are adequately insured, it protects the association’s master policy, helps manage rising deductibles, and reduces the likelihood of disputes. For boards, this means fewer headaches, lower financial exposure, and a stronger risk posture.
   
   In rental communities, it can even improve occupancy rates and resident satisfaction, as people feel more secure knowing their belongings and liabilities are covered."

7. What makes your resident insurance solution different?

   "Our solution is designed for all community types - HOAs, condos, co-ops, and rentals. Residents can access it online, compare quotes from multiple insurers, and get coverage in minutes. There’s no obligation to buy, just options when they’re ready. Licensed professionals are available to answer questions and provide personalized advice, ensuring residents get the right coverage for their unique situation. The platform is free to use, and residents only pay for the insurance they choose."

8. Is this program mandatory for residents?

   "No, it’s completely voluntary. We want to make it easier for residents who choose to use it, but they’re free to obtain insurance wherever they prefer. Boards can recommend the solution as a trusted, vetted resource, but participation is always up to the individual. Our goal is to support communities by providing valuable tools, not to mandate coverage."

9. How quickly can residents get covered through the solution?

   "Residents can get quotes in minutes and, in many cases, secure coverage the same day. This is especially helpful during annual renewals, move-ins, or when a building faces higher deductibles and needs residents to update their coverage quickly.
   
   The streamlined process saves time and reduces stress, making it easier for residents in busy communities to protect themselves and their neighbors."

10. Where can boards and residents learn more about this solution?

    "We’ve created a dedicated landing page with information, FAQs, and access to the platform. Boards and residents in HOAs, condominiums, co-ops, and rental communities can visit fsresidential.com/insurance to learn more and get started."

    You can get quotes for home, renters, auto, and other insurance here: https://www.fsresidential.com/insurance/

Resident insurance is a community issue that affects everyone - from board members and property managers to individual owners and renters. By making insurance more accessible and transparent, boards can protect their communities, reduce risk, and enhance the resident experience.

Whether you’re managing a high-rise, a suburban HOA, a co-op, or a rental property, proactive risk management is essential. To explore the new resident insurance solution and see how it can benefit your community, visit fsresidential.com/insurance.