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August 25, 2021
Property Insurance Rates Increasing
Hello Board of Directors,
As most of us have seen, the costs of most products and services have been increasing in recent months. One of the most volatile areas has been insurance. Alliant is one of the few management companies to have an Insurance Risk Manager, whose job has been to stay on top of recent changes. We want to stress that each property is different, but there are certain aspects that will affect insurance renewal pricing more than others. Properties with older roofs and recent claims have been the most adversely affected in recent months.
We are highly encouraging all of our boards to set up meetings with their current agent to not only discuss the expected renewal pricing, but also to discuss different ways to keep costs as reasonable as possible. Historically, Florida has had an extremely volatile insurance market, but over the past 7-9 years it had stayed relatively flat. We are expecting a harder market cycle for the next 2-3 years and this is something that we want to bring to our boards’ attention in an effort to set accurate expectations and put a plan in place to mitigate cost increases as much as possible.
At Alliant, we are always here to help advise our clients in the most pro-active way possible. Budget season is on the horizon and this is the perfect time for most boards to meet with their agent and determine the best way to proceed. If you have not yet met with your agent, we are happy to provide their contact information and facilitate a meeting.
Thank you,
The Alliant Management Team |