MichaelS56 (Minnesota)
Posts: 859
Posts: 859
Posted:
What will be the tipping point when insurance companies determine that insuring condos and or townhomes costs them too much and as a result will discontinue insuring either?
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Condo/ townhome master insurance premium
Started by MichaelS56 • 5 replies • 140 views
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CathyA3 (Ohio)
Posts: 6,299
Posts: 6,299
Posted:
When the company's profit (income less expenses) no longer compensates for the risks they have to take to earn that profit.
Unfortunately, this calculation is dependent on things that aren't predictable (ie. weather) and other factors that may not be shared among all condominiums.
I think that the bigger question is what, if anything, we can do when this happens. I hope that builders are paying attention. Lately there has been a push toward attached housing due to rising home prices - so issues with insurance can makes or break this kind of housing development.
Unfortunately, this calculation is dependent on things that aren't predictable (ie. weather) and other factors that may not be shared among all condominiums.
I think that the bigger question is what, if anything, we can do when this happens. I hope that builders are paying attention. Lately there has been a push toward attached housing due to rising home prices - so issues with insurance can makes or break this kind of housing development.
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
Quote:
Posted By MichaelS56 on 02/09/2025 8:26 AM
What will be the tipping point when insurance companies determine that insuring condos and or townhomes costs them too much and as a result will discontinue insuring either?
What will be the tipping point when insurance companies determine that insuring condos and or townhomes costs them too much and as a result will discontinue insuring either?
Outside a handful of high risk states, why do you believe condo insurance isn’t profitable? You may not like the premium, but most insurers have fewer competitors and condo insurance is profitable at current premium levels.
Part of the shock to many condo owners is there were far too many competitors and profit margins were very narrow for a long period. Increased claims has removed the weaker competition and narrowed options for HOAs.
ElleN (Idaho)
Posts: 1,338
Posts: 1,338
Posted:
Quote:
Posted By MichaelS56 on 02/09/2025 8:26 AM
What will be the tipping point when insurance companies determine that insuring condos and or townhomes costs them too much and as a result will discontinue insuring either?
What will be the tipping point when insurance companies determine that insuring condos and or townhomes costs them too much and as a result will discontinue insuring either?
The market will adjust. It always does.
MichaelS56 (Minnesota)
Posts: 859
Posts: 859
Posted:
State Farm in Minnesota has put on a cap of how much they will insure for a condo and an HOA. The insurance companies in Minnesota have added a hail percentage to the policies so the homeowners pay more of the cost.....changes are coming to most of the states for different reasons.....
DeanJ
Posts: 1,786
Posts: 1,786
Posted:
Quote:
Posted By MichaelS56 on 02/10/2025 5:48 AM
State Farm in Minnesota has put on a cap of how much they will insure for a condo and an HOA. The insurance companies in Minnesota have added a hail percentage to the policies so the homeowners pay more of the cost.....changes are coming to most of the states for different reasons.....
State Farm in Minnesota has put on a cap of how much they will insure for a condo and an HOA. The insurance companies in Minnesota have added a hail percentage to the policies so the homeowners pay more of the cost.....changes are coming to most of the states for different reasons.....
There are many insurers who are modifying their policies concerning hail for single family homes too. A roof generally has a 20 year life in most part of the use. If the roof is 15 years old, the insurance is only to cover 25% of the cost.
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