Gulfshore Insurance > Gulfshore Blog > Condo Associations

What a difference a year can make! Nearly all property premiums in 2015 (excluding flood insurance), saw significant decreases due to more insurance companies entering the property market and a competitive reinsurance market place. 

For many associations, insurance premiums are their largest overhead cost, so it’s very important to accurately forecast any changes for the coming year. Many factors in the marketplace affect insurance premiums which makes it challenging to budget this line item.

Each year, we list several market conditions and trends that impact your insurance renewal premiums, providing you with an educated look at how they may increase or decrease your association’s 2016 budget.

Our goal is to properly protect the assets of the association with financially viable insurance at the most competitive cost. Budgeting requires that we take a closer look at your policies, coverages, appraisals, and market conditions, then project our best estimate of where the costs will be at your next renewal.

Factors to consider when preparing your 2016 insurance budget: Read more

Insurance premiums, for many associations, are their largest overhead cost; which is why it is very important to accurately forecast any changes for the upcoming year. Many factors in the marketplace effect insurance premiums making it challenging to budget this line item.

In this article, we list out 8 market conditions and trends that impact your insurance renewal premiums and provide you with an educated look at how it will increase or decrease the amount you budget for in 2015.

Our goal is to properly protect the assets of the association with financially viable insurance at the most competitive cost. Budgeting, requires that we take a closer look at your policies, coverages, appraisals, and market conditions and then project our best estimate of where the costs will be at your next renewal.

Factors to Consider When Budgeting for Insurance

1. Property Rates Stabilized in 2014 and are expected to remain soft in 2015. A select set of risks are even beginning to show decreased rates. Since many factors impact the final property rates, we suggest budgeting around 5% increase for property insurance premiums. Assuming a “flat” renewal rate, this would include some consideration for replacement cost values beginning to go up. Read more

Tags: , , ,

Well, here we are, it’s that time of year when we start receiving calls from our condominium association managers and Boards of Directors requesting us to pull out our crystal ball and provide the 2014 insurance budgets!

Have you been wondering what you can expect in 2014? We’re breaking down what you can expect as you begin the planning process.

When we prepare a budget for any association, it is primarily for the purpose of providing you with the most accurate “indication” of possible insurance renewal premiums utilizing our knowledge of the most current market conditions and trends.

Our goal is to properly protect the assets of the association with financially viable insurance at the most competitive cost. Budgeting, requires that we take a closer look at your policies, coverages, appraisals, and market conditions and then project our best estimate of where the costs will be at your next renewal. Read more

For as long as we can remember, residential condominiums were required to maintain a fidelity bond or insurance in an amount at least equal to the total funds in the control of the board and/or their management agent. That requirement has always applied only to residential condominiums…until now!

House Bill 7119, recently signed by the Governor, extends this requirement to homeowners associations effective July 1, 2013. The new statute is as follows:

  • 720.3033(5) The association shall maintain insurance or a fidelity bond for all persons who control or disburse funds of the association. The insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. As used in this subsection, the term “persons who control or disburse funds of the association” includes, but is not limited to, persons authorized to sign checks on behalf of the association, and the president, secretary, and treasurer of the association. The association shall bear the cost of any insurance or bond. If annually approved by a majority of the voting interests present at a properly called meeting of the association, an association may waive the requirement of obtaining an insurance policy or fidelity bond for all persons who control or disburse funds of the association.

A few observations are in order here:

  • Nothing has changed relating to residential condominiums.
  • Non-residential condominiums are still not subject to the bond requirement.
  • Cooperative associations are not subject to the bond requirement.
  • Timeshare associations are not subject to the bond requirement.
  • Homeowners associations can opt out of the requirement as stipulated in the statute.

Gravity–what’s it costing you?
According to recent data, the total annual cost of slip and fall injuries in the United States in over $60 billion annually. There is more involved in preventing a slip and fall accident than just placing the proper signage at a slippery entrance. Property Managers and Board Members should always prepare for the worst and hope for the best. Below is an action plan to help you manage slips, trips and falls at your association.  Click here to download a Slip & Fall Checklist to use at your association. Read more

Tags: , , , , , ,