Reviewing insurance coverage and policies is one of the most important responsibilities of an association board in Florida. Insurance provides a critical safeguard for both the community’s property and its financial stability, but with premiums rising and coverage options changing frequently, boards must be proactive when preparing for insurance renewal to avoid unexpected rate hikes or gaps in coverage.
Here are some key considerations your leadership team must keep in mind as your insurance renewal comes due.
Review Your Current Policy Thoroughly
Before approaching renewal, it’s essential to understand exactly what your current policy covers—and what it doesn’t. Review property, liability, directors and officers (D&O), windstorm, and flood coverage to ensure it aligns with the association’s needs. Missing or outdated coverage can leave the association exposed, while overlapping coverage can inflate premiums unnecessarily.
Conduct a Risk Assessment
Insurers often adjust rates based on perceived risk. Maintaining accurate records can demonstrate to carriers that the association is actively managing risks. Completing Structural Integrity Reserve Studies (SIRS), milestone inspections, and updating safety protocols can also help justify favorable rates at renewal.
Address Claims History
An association’s claims history can directly affect premium costs. Boards should review past claims to ensure all documentation is complete and accurate. If a claim was denied, it’s important to understand why and correct any recurring issues before renewal. Being able to present a clean claims record or an explanation of steps taken to mitigate future claims can help avoid unnecessary rate increases.
Communicate With Your Insurance Provider Early
Waiting until the last minute to engage with your insurer can lead to rushed decisions, limited options, or coverage gaps. Start the renewal process well in advance, ask questions about potential rate changes, and clarify any endorsements or policy adjustments that may be recommended. Early communication allows the board to negotiate terms and shop for competitive options if necessary.
Consider Retaining Professional Guidance
Insurance policies for Florida associations are complex. Consulting with a community law attorney ensures that your board is fully aware of statutory requirements, coverage limits, and potential exposures. Professional guidance can also help boards evaluate whether deductibles, endorsements, or alternative policies might better suit the association’s needs.
Maintain Transparent Communication With Owners
Finally, boards should keep unit owners informed about insurance decisions and any special assessments that may be required to cover deductibles or uninsured losses. Transparency builds trust and ensures that homeowners understand the importance of maintaining proper coverage for the community’s protection.
Contact Us at Fernandez Law with Questions
Insurance renewal is an opportunity for boards to evaluate coverage, manage risks, and protect their association from financial surprises. A proactive approach not only safeguards the community but also provides peace of mind for board members and owners alike.
Reach out to our team today at Dania Fernandez and Associates, P.A. to ask your questions and take a look at our website for dozens of other helpful resources and legal forms for Florida condo and homeowners associations.
