Condo associations and HOAs across Florida have been involved in contested disputes due to mismanagement by board members and various types of lawsuits. Amidst record-high property premiums, insurers’ appetite to provide coverage for HOAs is dwindling, prompting fewer options and higher premiums.
Under state law, condo associations and HOAs must secure property insurance, but association governing documents and contracts with property management firms usually require additional policies, such as D&O, general liability, worker’s compensation, and crime insurance.
In The Real Deal Oscar Seikaly, CEO of NSI Insurance Group said, “D&O premiums are elevated in Miami-Dade County because of its higher concentration of condo associations and fraud. Some D&O carriers are pulling back in parts of Florida to limit their risk exposure.”
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