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The hidden expense that's sucking $74 billion out of the economy - Business Insider   

On Lyndale Street in the Logan Square neighborhood of downtown Chicago sits a six-unit condo building. The rather average building is home to more than a dozen residents, a mix of professional couples and families with kids. Everyone in the small community pays homeowners-association fees to cover building improvements, various repairs, and basic amenities like upkeep of the common area and trash removal. But lately the Lyndale Street residents have been sharing a new burden: soaring insurance costs.

The cost of insuring the property jumped by 43% from 2019 to 2022, forcing the board members in charge of managing the building's finances to make some tough choices. The board shopped around each year for lower insurance prices and tried to find other ways to save money, such as having the board president do the landscaping. But even with all the creative thinking, the board had to raise HOA fees by 15% over the past four years to help cover the higher insurance costs. A former resident who served as the board's president but recently resigned to move to the suburbs, told me that trash removal and insurance were the two main culprits for what they called a "mind-boggling" 47% increase in fees since the building's construction was finished in 2017.

"No one wants their monthly costs to increase, but when you have to tell them it's not even for additional services, well that just feels awful," they said, requesting anonymity to discuss private financial deliberations. They said rising costs kept the board from expanding amenities residents wanted, such as a shared composting system. "We were so strapped just covering the basics," they added.

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