Condo insurance rates expected to soar
Posted by Julie Patel on October 1, 2009 06:55 PM
Insurance costs for major high-rise condos are expected to rise next year.
That’s because Citizens Property Insurance told insurance agents today that it is increasing by an average of 20 percent rates for condominium buildings that cost more than $10 million to replace. Insurance for condo buildings is not subject to the rate freeze legislators imposed on most Citizens’ policies the past few years, nor is it subject to the 10 percent cap on rate increases for next year.
Evan Glassman, an insurance agent who specializes in high rise condos, said most of the state’s roughly 1,400 high-rise condos worth more than $10 million are insured by Citizens.
"I’m sure this is going to be difficult for a lot of associations in these economic times,” said Glassman, who is with Advanced Insurance Underwriters in Hollywood. "Fortunately there are several private carriers that are now competing in this marketplace, and many associations have options to leave Citizens for the first time in years."
"Citizens is required by law to charge actuarially sound rates," said the notice from Citizens. Insurance for condo buildings is "not subject to traditional rate review or approval by the Office of Insurance Regulation."