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For many associations, insurance expenses total to as much as 35% of their overall budget. For an expense of this size it is imperative that all parties work together to secure the association residents the very best coverage at the best price, every year. We, as association insurance specialists, often hear statements such as "We are insured with Citizens so there's no reason to quote us" or "That carrier refused us last year so there's no reason try this year." That is old market thinking. You can no longer set and forget your property insurance coverage in the state of Florida. The insurance market remains in a constant state of change. Citizens Insurance of Florida continues to cut coverage options and increase premiums in an effort to reduce their policy count and exposure. Other carriers, both admitted and non-admitted, aggressively write new business in a particular zip code or of a certain construction type one month and then close to that same zip code or type the next month. Carefully assessing your associations risk tolerance is one of the key steps in choosing appropriate coverage. Some associations are comfortable incurring the additional risk of placing their policy with a non-admitted carrier (not covered by the Florida Insurance Guarantee Association) for a reduction in premium while others are not. Other big saving avenues open to associations with great risk tolerance are very high hurricane and/or other deductibles. It is important to understand that "risk tolerance" is more than a state of mind; your agent should be able to lead you through a series of questions to help determine your association's ability to sustain a non insured loss. Additionally, like property markets, the risk tolerance of an association changes from year to year and should be reassessed before each renewal. An agent who specializes in association insurance and also takes the time to learn about your property can directly benefit the association. Being the eyes and ears of the underwriter, helping them better understand the characteristics of the association can produce an offer of coverage where there was none, or perhaps a reduction in premium for previously overlooked features. Our agency has helped several associations reduce insurance premiums, even while using the insurance carrier that currently writes the property, by providing more accurate information to the underwriters. When it comes to your associations insurance, partnering with an experienced agent to ensure the required due diligence is performed every year pays off. Read Original Article: http://www.condominiumassociates.com/insurance-matters/
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