Coastal condominiums typically allocate 50% of the budget to insurance premiums. Property coverages are the largest expense in our Condominium Association’s risk management programs.
We are happy to see a stabilization occurring in the property market. For more information, see our Fall Coastal Property Market update here.
- Liability coverages are continuing to see increases in premium in 2025. These are due mostly to increased litigation in the habitational market.
- Directors & Officers policies are seeing 5-10% increases in premium.
- General Liabilty policies are seeing 5-10% increases in premium.
- Umbrella and Excess Liability policies are seeing 10-70% increases and sometimes higher to maintain the same level of coverage. Excess liability policies have been known to offer higher limits of coverage for a very small premium.
What can our Community Associations do to mitigate the liability risk?
- Communicate with Homeowners
- Slip and Fall Prevention
- Weather Alerts (Rain, Wind and Snow)
- Reread your governing documents and make sure that when the Board is making decisions, they are following the Association’s and the state’s requirements.
