A new trend is out mollifying the high cost of association insurance.

After Hurricane Wilma, insurance rates soar to an all time high for community associations. Most existing local insurance companies packed up their bags and left “Dodge City”. This only left one company to carry the burden of insuring Florida associations with only the bare minimum. Citizens Insurance Company, which is a State funded company. After 2004 Citizen insurance more than doubled their rates for most South West Florida’s associations. The High cost of insurance directly affects all Florida homeowners.

There been ruses played by the Florida legislation using political tactics of conversions trying to stray Floridians away from demanding Charlie Crist to keep his promise of lowering Citizens insurance rates. See, “Property Insurance at a All Time High“.

Another feeble attempt by the Florida legislation to lower the ridiculously high price of homeowners insurance. In most classification codes, State has approved a workers compensation rate decrease, which is averaging slightly above 18%. Your association’s insurance agent would have to apply for the new workers compensation policy. Although it has happen before, it’s rare for an insurance agent offer rate decreases. As long as the association maintains a drug free work place and premiums are paid on time, your association should qualify. Again, this saving is peanuts compared to what we pay Citizen’s for Windstorm insurance.

While you have your association’s insurance agent check to see if your community qualifies for Workers Compensation deductions, have them check the new liability rates. General liability supposedly declining approximately 5 – 15%. This would depend on loss history and liability exposures of buildings. Still, the savings are no where near the doubling of insurance rates after 2004.

If your associations roofs hadn’t been checked by a Florida Contractor, might as well do it now. This is the only way Citizen’s give any kind of insurance relief. Beware of roofing mitigation contractors charging 10% of insurance savings. Paid them a flat fee instead. This will save the association money. The average refunds we experienced were 12 to 18% of  windstorm insurance premiums after factoring mitigation costs. Most associations qualify for these deductions. It’s rare for a roof not having proper straps and ties secured in place.

While the State of California is going bankrupt, the State of Florida is banking billions through Citizens Insurance Company. For relative posts see, “Property Insurance at a All Time High” and “Condominium has Regulations, Where Homeowner Associations do not. Regarding Notice of Meeting to Consider Excessive Budget” and lastly “Condomium & Homeowner Association Insurance Updates”. If you are the select few who donate their time to serve on a board of your Association and/or a Florida Homeowner, you do not want to miss any new important posts. Please subscribe to our community. Or our complimentary email services.