Broward Insurance for Condo Corporations

1. Why Condo Associations Need Specialized Coverage

Condominium corporations in Broward County face a unique mix of risks:

• Severe storms and hurricane exposure

• Flood, mold, sinkhole risks

• Liability claims by residents and visitors

• Damage to common areas and building structures

• Employment-related risks with maintenance staff

General homeowner policies won’t cut it—associations require tailored commercial-style insurance.

2. Core Coverages for Condo Corporations

• Commercial Property / Building Insurance

Insures all structures—including roofs, walls, shared amenities, balconies—against fire, windstorm, hail, and vandalism.

• Directors & Officers (D&O) Liability

Protects board members in cases of alleged mismanagement, breach of fiduciary duty, discrimination, or misconduct.

• General Liability

Covers bodily injury or property damage that occurs in common areas (lobbies, hallways, parking lots, pools, etc.).

• Umbrella / Excess Liability

Provides higher limits for catastrophe events or large injury claims—critical in high-traffic condo communities.

• Fidelity / Employee Dishonesty

Safeguards against theft or embezzlement by management or staff—always worth adding for peace of mind.

• Workers’ Compensation & Employers Liability

Mandatory for any staff—covers medical and wage replacement costs if they’re injured on the job.

• Crime & Cyber Protection

Secures association funds from fraud or cyberattacks targeting online banking, email systems, or member data.

• Loss Assessment Coverage

Essential for covering uninsured losses imposed as special assessments—such as after a windstorm or lawsuit.

• Flood Insurance

Even outside flood zones, Broward condos face flood risk—standard policies exclude flood, so separate coverage is needed.

3. Risk Factors Unique to Broward County

1. Hurricane and Tropical Storm Risk
   High wind and storm surge risks mean building and windstorm deductibles are often used.

2. Flood Zones
   Condos in A or V zones require flood insurance, but even B/C zones have flash-flood risks.

3. Sinkhole Hazards
   South Florida’s geology may expose associations to sinkhole damage—specialty endorsements or separate policies may help.

4. High Value & Aging Properties
   Older buildings and luxury amenities (e.g. docks, pools, elevators) demand higher replacement-cost coverage and scheduled endorsements.

4. What Drives Your Premium

• Property age, construction type (wood, concrete), and building height

• Coverage limits and chosen deductibles (wind deductibles tend to be higher)

• Total exposure—number of units and shared assets

• Claims history—especially wind, flood, or liability claims

• Hurricane mitigation credits—like impact-rated windows or roof straps

• Presence of pets, pools, fitness rooms, boat docks (these drive up liability risk)

• Governance best practices and legal exposures of the board

5. Smarter Risk Management

1. Pre-Loss Assessments: Conduct annual building evaluations—roof, balconies, HVAC systems.

2. Hurricane Preparations: Install impact-rated windows and reinforce entry points to lower windstorm deductibles.

3. Reserve Studies: Maintain replacement reserves to avoid enormous special assessments after damage.

4. Governance Training: Educate board members on fiduciary duties and conflict-of-interest policies.

5. Cyber Hygiene: Secure passwords, limit financial permissions, and require multi-factor authentication.

6. Employee Oversight: Implement strict background checks and internal controls for staff handling payments or funds.

6. Common Gaps to Avoid

• Assuming flood or hail is covered by homeowners policy—that’s incorrect.

• Relying on master association to cover investor-owned units.

• Underestimating D&O and crime/employment liability exposures.

• Neglecting loss assessment protections—this can leave unit owners paying out-of-pocket.

• Failing to update replacement values—insurance must reflect inflation and community improvements.

7. Annual Review Workflow

• Insurance audit: Validate property schedules, unit count, and structures.

• Reassess limits: Adjust replacement cost, liability, loss assessment based on inflation and improvements.

• Verify endorsements: Ensure windstorm deductibles, sinkhole and hurricane clauses are present.

• Shop for renewal: Get at least two competitive quotes—evaluate binding clauses, premium discounts, and policy wording.

• Board training session: Review coverage highlights, explain loss assessment procedures, and confirm correct certificates for owners.

🚩 Quick Comparison Table

Final Takeaway

Broward condominium associations face complex property, liability, and governance risks. The right suite of insurance—backed by proactive risk management and annual reviews—protects the community, board leadership, and individual owners. Comprehensive coverage currently ranges from $30 to $150 per unit annually, depending on size and risk factors. Higher exposure properties may see premiums above that range.