✨✨General Discussions

Greetings,

I am living at a nonprofit 501(c)(3) CCRC in Wisconsin.

We are being informed that a 10% increase in monthly fees will be imposed for the coming fiscal year, and that about 4% of this increase is due to property and liability insurance costs going up to approximately double of what they were last year.

Is anyone else experiencing drastic increases in fees due to insurance costs? We haven't had any significant claims as far as I know. Any insights as to what would cause these costs to double?

Thanks!

Deborah

Hi Deborah,

I live at a CCRC in New Jersey (Medford Leas). Our fee increase happens in May and residents know about one month before.My contract does not limit the fee increases but 6%is notsustainae.

Deborah,

My CCRC participates in a consortium of Mennonite, Quaker, and Bretherin facilities that pool the risk to self-insure. They limit their exposure by re-insuring for claims that exceed a certain high threshold. This produces lower costs because the members have a better risk profile that the market as a whole. It may be that the recognition that claims are paid by the community discourage certain claims, hard to know.

If that's not possible for your community, they should shop. As a businessman, I found that insurance companies exploit the reluctance to shop and change carriers. Our premiums crept up if we didn't constantly look for a better deal.

Richmond Shreve

NaCCRA Board Member

Forum Moderator