CONDOMINIUM ASSOCIATION INSURANCE RATES TUMBLE
December 19, 2007
Dec 20, 2007 -- /prbuzz/ --For more information contact:

Jeremy Burr, Vice President Condominium Association Insurance
(407) 998-5427
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FOR IMMEDIATE RELEASE

CONDOMINIUM ASSOCIATION INSURANCE RATES TUMBLE

(Thursday, December 13, 2007)

Longwood, FL – The insurance industry reacted to horrific hurricane disasters in 2004 and 2005 by raising rates to an unprecedented level in 2006. Luckily for condominium association insurance policy holders the record rates are plummeting all over the United States…including Florida and other coastal states.

The seemingly “knee-jerk” reaction to the claims in 2004 and 2005 has deeper-rooted issues than most recognize. The reinsurance marketplace was the first to hike rates as they take the brunt of large claims. For example, a policyholder that has apartment complex insurance needs facing a $2,000,000 hurricane claim files the claim to their respective carrier, who then cedes off a majority of the claim payment to a re-insurer. In calm years, re-insurers have phenomenal underwriting profits because small claims are absorbed by the insurance carriers. Due to mild 2006 and 2007 hurricane seasons, the re-insurers posted record profits and the marketplace is now more aggressively underwriting.
The condominium association insurance sector is particularly vulnerable to insurance premium hikes. Unit owner assessments, the market value of a condo, and other variables are impacted not just by hurricane activity itself, but by the financial aftermath of increasing condominium association insurance premiums. As rates continue to fall, a pessimist would note that we are just one large storm away from a similar reaction by the insurance industry. It certainly seems that the insurance community has a short memory – 2004 & 2005 combined to equal over $100 billion in insurable losses and now rates are quickly approaching 2004 levels. For now, condominium association insurance premiums are falling as unit owners of condominium associations hope for a continued slide in premiums, which is expected as we enter 2008.

The team at www.insuredapartments.com is able to help place Florida Condominium Association Insurance as well as Condominium Insurance programs in all 50 states. Please contact Jeremy Burr at 407.998.5427.
About the Press Release
Longwood, FL – The insurance industry reacted to horrific hurricane disasters in 2004 and 2005 by raising rates to an unprecedented level in 2006. Luckily for condominium association insurance policy holders the record rates are plummeting all over the United States


 
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