Dear Lakewood Residents,

We would like to provide an update regarding the Lakewood Homeowners Association’s insurance renewal, which was discussed at last week’s Board meeting.

Like many communities across the country, Lakewood has experienced significant changes in the insurance marketplace. However, Lakewood’s unique amenities and facilities make insurance coverage particularly complex. Our community includes swimming pools, diving boards, a waterslide, lakes, marinas, sports courts, restaurant operations, and liquor liability exposures. Each of these amenities presents its own insurance considerations, and together they create a level of risk that requires specialized underwriting review.

Last year, our insurance carrier notified us of its intention to discontinue coverage for the Association. Due to an administrative issue, our policy was ultimately renewed for one additional year. Earlier this year, we received formal notice that the carrier would not renew our coverage for the upcoming policy term.

Following that notification, our insurance agent began an extensive search for alternative coverage options. Due to ongoing challenges in our Association, which included litigation fatigue and a significant liability claim payout, Lakewood was placed into what is known as the Excess & Surplus (E&S) insurance market. This market provides coverage for organizations and properties that fall outside the underwriting appetite of traditional insurance carriers.

While placement in the E&S market allows us to maintain the necessary insurance protection for the Association, it also results in higher premium costs than those typically associated with standard insurance carriers.

The Board and management team remain committed to pursuing opportunities that may allow Lakewood to return to the standard insurance market in the future. We are optimistic that through continued risk management efforts and favorable market conditions, we may be able to secure more competitive coverage options over the next one to two years.

We appreciate your understanding as we navigate these industry-wide challenges and remain committed to protecting the Association’s assets, amenities, and members.

Thank you,

LPOA Staff & Board of Directors