Castle Rock community HOA fees skyrocket after insurance premium increases by 600% in Colorado
Homeowners in Castle Rock's Latigo community, near Metzler Ranch, will see their Homeowner's Association fees skyrocket in 2024 after the HOA's insurance premium went up by 600%. The reason behind the increase comes down to high property valuations and Colorado's extreme weather.
"I remember trying not to pass out," said homeowner Sibyl Swope.
In early November, Swope received a notice from her HOA. Her dues were going up.
"It was a gut punch. Our dues are $300. They're going up to $820 in 2024," said Swope.
That's not yearly or quarterly, it's over $800 a month.
"So that's my mortgage payment. My mortgage just doubled," said Swope.
Swope was expecting an increase, amid rising costs and increased property values in Douglas County, but nothing like this.
"It's not something I had in the bank, it's not something I thought about," said Swope.
She's already paying for her own home insurance.
"That policy only went up 11%," said Swope.
The HOA's management company, KC & Associates, says the community's insurance premium went from $197,000, to $1.36 million, a near 600% increase. KC & Associates says when they tried to find cheaper coverage, they were turned away by insurance carriers. So now the increased cost will fall on homeowners.
The community's insurance broker, Assure Partners, says inflation and recent natural disasters have created a perfect storm in the insurance world, where there's a massive demand for coverage and limited capacity.
What's more, Latigo backs up to Metzler Family Open Space. While Castle Rock Fire designates the community as a "moderate" fire risk, CoreLogic, which provides risk assessment scores for insurance companies, has rated the area as a "high wildfire zone."
"I feel like they dropped the ball," said Swope.
Swope wasn't the only resident floored by the increase. The community formed an insurance committee and vetoed the initial budget plan. But now, Swope says the HOA is proposing frontloading the increase as a special assessment.
"I'm absolutely hoping to veto this. I'm kind of the opinion that the HOA board and management made a huge mistake and I just don't think that the homeowners should be on the hook for their mistake," said Swope.
The HOA board will meet on Saturday at 2 p.m. at the Castle Rock Library to ratify the new budget proposal. A total of 116 residents will need to be present and vote against it in order for it to be vetoed.
KC & Associates says they're hoping to find "alternate solutions" in the first quarter of next year.
RELATED: Fire-related insurance challenges to blame for high HOA fees in Colorado, says insurance division