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How Frequently Should Your Florida HOA Review Its Insurance Coverage?

The onset of hurricane season is always a good reminder for condo associations in South Florida to review their insurance coverage. As we all know, here in Florida the insurance industry is complex and ever-changing.

Many insurance companies have left the state entirely due to insolvency. The increased storm impact hitting the state combined with the use of reinsurance to pay claims is leading to major rate hikes for the insured. Unfortunately, this is a trend we expect to continue (for more about the impact major storms are having on the insurance industry, be sure to read this post, as well as this one that summarizes the results of the special legislative session on insurance.)

As a member of your condo association’s board of directors, assessing insurance coverage for your HOA is a big responsibility, and perhaps nowhere is it more challenging than here in Florida. To ease the burden of this major undertaking, enlist the help of an attorney who practices both Community Law and Insurance Law. Our team at Dania Fernandez and Associates, P.A. is standing by to help.

When Should Your Condo Board Review Insurance Coverage?

At a minimum, condo associations should review their insurance coverage at least once a year. In fact, now is a very good time to act. 

One of the first things your HOA board should do is determine if your current insurance carrier will continue to renew policies. Not all are, and insurance companies are only required to give you a 45-day notice of their intent not to renew a policy.

Next, you need to assess how much premiums will be going up (because, yes, they will very, very likely be going up). Review your budget and CC&Rs. The reality is that most condo associations in Miami will have no choice but to amend their budgets to account for rising insurance premiums. That said, you should always feel free to shop around for new insurance. A skilled insurance law attorney can help you understand what converge your association does and doesn’t need to best protect itself.

If you have questions about insurance law in Florida or need to retain an attorney for your condo association, we are here to help. Get in touch with our team at Dania Fernandez and Associates, P.A. to learn more.

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