HOA Insurance question

Started by FredW5 • 5 replies • 464 views

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FredW5 (Florida)
Posts: 177

Posted:

Hello, all. Our HOA insurance is being raised by almost double, which will cause an increase in our dues. Nothing has changed in our community causing for this increase. Any suggestions as to any insurance brokers or companies that may negotiate better rates? We are an 80 home HOA community in So. Florida.
Thanks fr any input.

MartyS5 (Georgia)
Posts: 23

Posted:

I would talk to an independent agent (who represents multiple companies). You need to look specifically at those who insure non-profits. We found several years ago that the company who was insuring our HOA was someone's friend and was a high risk insurer. We saved $600/year. Be sure you have coverage for fiduciary, criminal, property and liability or whatever your bylaws require.

CathyA3 (Ohio)
Posts: 6,299

Posted:

HOA insurance rates have been rising for a number of years throughout the US, but some areas have it worse. A major cause is damages resulting from extreme weather events. Another possible cause of higher premiums is a history of making numerous smaller claims - this can even make an association un-insurable altogether.

I agree with MartyS5's comments. We shop around every year and recently changed carriers. In fact we now have two separate companies providing our coverage - together they give us the same coverage that was provided by a single carrier previously, for significantly less money. It is a bit more work on the board's part, though, to evaluate these bids - insurance can be confusing. We also raised our deductible - there is also a nationwide move toward higher deductibles in general, and we keep pace with the national trend.

FredW5 (Florida)
Posts: 177

Posted:

Thank you for your. prompt responses. Its a big help.

GenoS (Florida)
Posts: 4,276

Posted:

Our annual premiums went up 25% last month. Not a lot has changed around here in the last year. We were told that rates went up all over Florida regardless of whether or not a particular area was hit with a lot of storm damage or not.

Be aware that you can't really rate-shop for your condo or HOA association in Florida. Once a licensed agent requests a quote for you from an insurance company, you are "locked in" with that agent and an ins. co. will not give quotes to any other agent. Your best bet is to shop around for an agent who will best serve you, and then they will look around and try to get competitive quotes from different companies.

MarkM19 (Texas)
Posts: 1,459

Posted:

Fred,
I think Cathy has the best advice regarding raising your deductibles which in turn lowers your rates. In some cases this can be dramatic. If your HOA is sound and has managed your funds smartly you should be able to pay a 10k Deducible for example on a claim if it is a Major claim. Anyone or any Company that files a claim for less than 2x or 3x your deductible is not really thinking clearly. Insurance is for major events not minor events. Carriers will drop people in some cases after 1 claim. The other thing they do is pay the claim and raise your rates so that they recover their loses very quickly. I guess what I am saying is Insurance is a necessary evil and they are pretty much all evil.

The way I have sold it to my boards is we take the saving from the higher deductible annually and set it aside for the small claim if and when they happen. I have been on boards for 10 years and we have never had to file a claim. I am about to go knock on wood now.

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