Broward Insurance for Condo Corporations

If you own a condo in Broward County or manage a condo corporation, securing the right insurance coverage is essential. Condo corporations have unique insurance needs, as they must protect not only individual unit owners but also shared property, common areas, and liability risks.

With rising insurance costs and increasing risks from hurricanes, flooding, and legal disputes, understanding Broward insurance for condo corporations has never been more important. In this article, we’ll cover:

• What insurance policies condo corporations need
• How insurance costs are rising in Broward
• Ways to reduce premiums
• How Toby Hansen Agency can help you find the best coverage at the lowest price

1. What Insurance Do Broward Condo Corporations Need?

A condo corporation (also known as a homeowners association or HOA) is responsible for maintaining the shared elements of a condominium complex. This means it must carry several types of insurance to protect itself and its residents.

Essential Insurance Policies for Condo Corporations:

1. Master Condo Insurance Policy

This policy covers the physical structure of the condominium, including:

• The building’s exterior (walls, roof, foundation)
• Common areas (hallways, lobbies, elevators, pools, parking garages)
• Shared plumbing and electrical systems

Depending on the policy, it may also cover fixtures within units, such as built-in cabinets and appliances.

Types of Master Policies:

• Bare Walls Coverage: Covers only the structure and shared areas, leaving unit owners responsible for interiors.
• Single-Entity Coverage: Includes limited coverage for built-in unit features.
• All-Inclusive Coverage: Covers nearly everything in the building, including unit interiors.

2. General Liability Insurance

This protects the condo corporation from lawsuits due to injuries or property damage that occur in shared spaces. If a resident or visitor slips and falls in the lobby, for example, liability insurance covers legal costs and settlements.

3. Directors and Officers (D&O) Insurance

Condo board members make important decisions, and lawsuits against them are common. D&O insurance covers legal expenses if board members are sued for mismanagement, negligence, or financial disputes.

4. Flood and Hurricane Insurance

Since Broward County is in a high-risk zone for hurricanes and flooding, condo corporations need specialized coverage beyond a standard policy. This includes:

• National Flood Insurance Program (NFIP) coverage for water damage.
• Windstorm insurance to cover hurricane-related damage.

Without these policies, a condo association could face major financial losses.

5. Crime and Fidelity Insurance

This protects the condo corporation from financial losses due to fraud, theft, or embezzlement by board members, employees, or contractors.

2. Why Are Broward Condo Insurance Costs Rising?

Condo insurance rates in Broward County have increased significantly in recent years. Several factors contribute to these rising costs:

1. More Frequent Hurricanes and Flooding

Broward County has seen a rise in extreme weather events, causing major damage to condos. Insurers must pay out more claims, leading to higher premiums.

2. Inflation and Higher Construction Costs

Building materials and labor costs have skyrocketed, making repairs and rebuilding more expensive. Insurance companies adjust their rates to reflect these costs.

3. Increased Lawsuits Against Condo Associations

Condo corporations in Florida face a growing number of legal disputes, including:

• Lawsuits from residents over maintenance issues.
• Personal injury claims for accidents in shared spaces.
• Financial mismanagement claims against board members.

More lawsuits mean higher insurance costs.

4. Fewer Insurance Companies in Florida

Many insurance companies have stopped offering condo coverage in Florida due to high risks, reducing competition and making premiums more expensive.

3. How Can Condo Corporations Lower Their Insurance Costs?

Despite rising prices, there are ways for condo corporations to reduce their insurance premiums.

1. Work with an Independent Insurance Agency

Instead of relying on a single insurer, work with Toby Hansen Agency, which compares nearly 100 carriers to find the best policy at the lowest cost.

2. Improve Building Safety and Maintenance

Condo corporations can qualify for lower rates by:

• Upgrading the roof and windows to meet hurricane standards.
• Installing security cameras and fire prevention systems.
• Regularly maintaining plumbing and electrical systems to prevent damage.

3. Raise Deductibles

A higher deductible means lower premiums, though condo associations must ensure they have reserves to cover potential claims.

4. Bundle Insurance Policies

Some insurers offer discounts if the condo corporation purchases multiple policies from the same provider, such as general liability and property insurance.

5. Strengthen Financial Reserves

Insurers may offer better rates to condo corporations with strong financials and a well-funded reserve for emergency repairs.

4. How Toby Hansen Agency Can Help

Navigating the complex world of condo insurance in Broward can be challenging. Toby Hansen Agency specializes in finding the best coverage for condo corporations by:

• Comparing policies from nearly 100 carriers to secure the lowest price.
• Offering expert advice on policy types and coverage limits.
• Helping condo corporations find discounts and risk management solutions.

Protect Your Condo Corporation with the Right Insurance

Broward condo corporations face unique challenges, from hurricane risks to rising premiums. Understanding your insurance needs and working with an experienced agency can help you secure the best coverage at the most affordable price.

At Toby Hansen Agency, we ensure your condo corporation is fully protected while keeping costs under control. Fill out our free quote request form below to see how much you can save today!