Current Reserve Study

A reserve study projects the cost and timing of major repairs and replacements, roofs, paving, painting, mechanical systems, and sets the reserve funding plan. Several states require one on a set cycle. California, under the Davis-Stirling Act, requires associations to review the reserve study at least every three years and to disclose reserve funding in the annual budget package. Florida layers its structural reserve requirements on top through the SIRS regime for taller condominium buildings.

A current reserve study is the backbone of both financial health and insurability. Underfunded reserves lead to deferred maintenance, which drives claims and, eventually, non-renewal or a coverage decline. Lenders and carriers increasingly look at reserve funding as a risk signal. Keep the study on the state-required review cycle, fund toward the plan rather than the statutory minimum where possible, and treat a stale study as a warning sign that both the budget and the insurance renewal are exposed.

Not an insurance term as such, but a stale reserve study correlates with deferred maintenance and adverse renewal outcomes. Carriers reward communities that can show a funded, current plan.