[1insider]

Just read about the Seaplace condo insurance disaster on Longboat Key this morning. According to what I read their master policy renewal premium increased this year from $660,000 a year to $3.4 million. Are they alone or are they just the first condo association to get a post-Surfside reality check? I figured we'd get increases after the big settlement at Surfside but it's been over a year and this is the first condo insurance escalation story I've heard.

[oceangaia]

$3.4 million pays for a lot of repairs.

[LKJ1988]

Originally Posted by 1insider

Just read about the Seaplace condo insurance disaster on Longboat Key this morning. According to what I read their master policy renewal premium increased this year from $660,000 a year to $3.4 million. Are they alone or are they just the first condo association to get a post-Surfside reality check? I figured we'd get increases after the big settlement at Surfside but it's been over a year and this is the first condo insurance escalation story I've heard.

This is why you never buy a condo my man. They fall down like a clown or need real work to fix up and the owners are on the hook like a snook on a hook.

[MOforthewin]

If this hits next week, especially 100 miles east! All models are showing a powerful hurricane somewhere in the gulf. be it LA or FL who knows. Climo for end of sept would suggest more of a FL threat though.

[Ladywithafan]

Originally Posted by johns55

For those of you talking about what you pay in HOA fees and extrapolate that out to insurance cost, how do you know what percentage of your HOI fee is for insurance?

There's a line item in all HOA/COA budgets for insurance; that's how. Divide by the number of units & that's what you're paying.

[Ladywithafan]

Originally Posted by 1insider

Just read about the Seaplace condo insurance disaster on Longboat Key this morning. According to what I read their master policy renewal premium increased this year from $660,000 a year to $3.4 million. Are they alone or are they just the first condo association to get a post-Surfside reality check? I figured we'd get increases after the big settlement at Surfside but it's been over a year and this is the first condo insurance escalation story I've heard.

Actually, the insurance increase does not have to do with Surfside. Surfside has brought about Senate Bill 4D written in haste by legislators not in condominium business. Just went to a great class given by Becker on this last Friday. The Surfside horror will bring 40 year inspections and structural integrity studies into place like they should have been 20 years ago. Insurance increases more and more have to do with things like 13 year old roof (Anna Maria Island example: Runaway Bay $172K to $581K ^37% next month).

Those of us in the business are finishing up those draft 2023 budgets and I'm sure there's going to be a lot of trauma in the approval meetings.

[AngelaRetired]

Originally Posted by LKJ1988

This is why you never buy a condo my man. They fall down like a clown or need real work to fix up and the owners are on the hook like a snook on a hook.

LKJ, I like single-family homes (1 storey) Angela

[LKJ1988]

Originally Posted by AngelaRetired

LKJ, I like single-family homes (1 storey) Angela

me also.

[WRnative]

FedNat's insolvency last week, even before Hurricane Ian's devastating impact, further demonstrates the perilous state of Florida's private insurance industry. Despite increased premiums and cancellation of riskier policies, insurers struggle to remain profitable.


<<

• FedNat began in Florida in 2001 as American Vehicle Insurance Co., but changed its name to FedNat. It is 100% owned by FedNat Holding Co., a publicly traded firm. (Shares of FedNat on the Nasdaq exchange closed Monday at 22 cents, down from a 1-year high of $2.81 in November of 2021, according to Yahoo! Finance. In 2018, before FedNat Insurance experienced heavy losses after storms in Louisiana and Texas, shares traded as high as $26.)
• After FedNat’s 2019 financial statement showed a significant drop in net income and surplus and a $39 million underwriting loss, the OIR required the company to start filing monthly financial reports and to have regular phone calls with regulators. But the red ink continued, with FedNat posting a $97 million underwriting loss for 2020 and $106 million for 2021, Christy’s affidit explained.

>>



https://www.insurancejournal.com/new.../27/686796.htm

[1insider]

Get ready for Citizens assessments to make up the difference.

Citizens allocates approximately 83% of every premium dollar to pay claims, with approximately 15% reserved for paying hurricane claims. A particularly devastating storm or series of smaller storms could exhaust these reserves, leaving Citizens without enough money to pay all claims. If this happens, Florida law requires that Citizens charge assessments until any deficits are eliminated. Note that you don't have to be a Citizens' policyholder to be assessed.