Citizens' Property Insurance is the state not-for-profit insurance company in Florida. Citizens insures over 23,000 Community Associations in Florida and recently issued a Bulletin notifying of its intent to increase premiums for policies of properties valued in excess of $10 million. The increase may be by up to 20%.
Insurance premiums are almost always the largest line item in a community associations budget. Communities in Florida already dealing with large delinquencies, large expenses, increased govrernment fee's (fire, elevator, etc.), and bad debt need to take this into account when preparing their budget for 2010
If you are unsure if your community falls within this increase, please contact us.
To clarify, the 20% rate increase is only for a building with a replacement cost over $10,000,000.
ReplyDeleteIf an association has multiple buildings and their total replacement cost is over $10,000,000 but no single building is over $10,000,000, these policies will be capped at a 10% rate increase. Single buildings over $10,000,000 in value were not covered by the 10% annual rate cap that was passed by legislature earlier this year.
Thanks Troy for clarifying those specifics. Much appreciated.
ReplyDelete