Association Insurance Dilemma 2023
As some of you are aware, in 2022 our association’s cost for insurance was $224,982. When we prepared our 2023 budget, we were warned by our insurance broker Tom Kochis that rates were going to increase substantially but he had no clue what the increase would be. Consequently, we put $330,000 in the budget hoping that would be enough. Boy, were we wrong.
In order to maintain the same level of coverage and meet the state minimum requirements for coverage our cost for 2023 will be $492,897. Tom contacted 41 other insurance companies for proposals and most either declined to quote, were no longer writing policies in Florida or were not competitive. As most of you know, many insurance companies have left Florida and the recent hurricane just made matters worse for those the one or two that stayed.
On Monday March 20th several concerned owners met with Tom Kochis, myself and John Shea to discuss our situation, how we got here and what can we do about it. I asked Tom to put together a summary of the information he provided so I could share it with all owners. That summary is attached.
Needless to say, the association does not have the funds to cover this increase. The only solution is a special assessment of around $1100 per owner. More details on the exact amount of the assessment will be available soon as well as the method for making this payment. Additionally, we hope to have Tom available at the April meeting to answer any questions.