In our world today, everything seems to cost more.

Insurance is not immune to this trend.

To mitigate this trend and hopefully stay in this market, most if not all carriers have started making aggressive changes.  How will this affect you, your association, or your property?

Lee Goren, Insurance Advisor has been specializing in analyzing trends like these for 8 years. His knowledge of personal and commercial lines is why we reached out to him for this newsletter.

Before Lee was an Insurance Advisor, he played professional Hockey for 13 years. After a devastating accident, he vowed to educated others on the importance of having proper insurance coverage. Now, Lee works for Rooke, Johnson & Renslow Insurance agency. 

Rooke, Johnson & Renslow Insurance Agency, Inc. was formed on January 1, 1986, with the merger of Rooke & Company, Tuthill-Johnson & Associates and Renslow & Associates, Inc. With heritage dating back to the 1930's, RJR Insurance has a long history of serving the Business and Personal Insurance needs of our many friends and clients.

"Our commitment to every client has remained unchanged since our beginning – To provide the very best solutions for the insuring needs of each and every client through a thorough evaluation of needs, review of the insurance markets and finally the placement of those coverage needs with a top-quality insurance company."

2023 Association Market Insight From Lee Goren

"In our world today, everything seems to cost more. Insurance is not immune to this trend. Inflation, supply chain disruption, increased labor cost of construction/repairs, increased building material costs, acute increase in insurable losses, and successive years of damaging hailstorms/windstorms have all led to one conclusion: increased insurance costs and higher deductibles for associations and property risk in general.

To mitigate this trend and hopefully stay in this market, most if not all carriers have started making aggressive changes over the past few years. First and quite noticeably, most association accounts have or will see an average of a 15% increase in premium rate upon renewal. If your association has had claims, you may see 25% or more in rate increase. On top of this, carriers are also trying to mitigate risk exposure with programming changes to deductibles (higher deductibles and/or % deductibles, per dwelling deductibles vs. single deductible) and additional exclusions or limitations to matching provisions for roofs, siding, and windows. Most carriers have also put exclusions or limitations to what they deem “cosmetic damage”."

Tips for Navigating the Current Market

  • Be prepared for increased insurance cost to the Master Policy and higher deductibles. Some deductible increase may be forced by the carrier, but can your association take on even higher deductibles to reduce premium cost?
  • Communication with your residents. With higher and/or % deductibles in play it is vitally important that unit owners know what their potential assessment could be due to a hailstorm, etc. Increasing their loss assessment coverage on their individual HO6 policy may be prudent and necessary. At the very least, it should be reviewed with their insurance professional.
  • Carriers have been especially conservative with rates and guidelines in regards to buildings with older construction and/or critical components (i.e. roofs, plumbing, HVAC, etc.). When working with your agent, make sure they know about upgrades/replacement to these critical components. Keep records of these improvements so your agent can pass that information onto the underwriter.
  • Be proactive with maintenance and protection of the property. Create a culture of minimizing controllable risk. Examples: safety guidelines for patio or balcony grilling and smoking, install water sensors, maintain shut off valves, etc.
  • Don’t forget to review other components of the insurance program like General Liability, Commercial Umbrella, and Directors & Officers coverage.

Are you a Property Manager or a Homeowners Association Executive looking to stay ahead of trends like those discussed here? Subscribe to our quarterly newsletter. We promise no spam! Just valuable information.