It seems like the everyday operating expenses of condos and HOAs just keep going up and up—fuel costs, staff salaries, physical repairs and the cost of cleaning supplies and other materials have all crept up (or shot up) in the last couple of years. But what about the cost of insurance coverage? Has it edged upward along with everything else? In this article, we’ll attempt to find out.
Co-ops and condo associations typically buy a variety of insurance policies. These can include general liability, umbrella liability, property, equipment breakdown, workers’ compensation, directors and officers, professional liability, and disability benefits law coverage, to name just a few.
The experts who were interviewed for this article concur that on a long-term basis, insurance premiums have indeed risen—a spike in rates was especially noticeable after 9/11. During the past few years, however, the market has become “soft” and premiums have actually gone down.
Several explanations are given for this phenomenon.
“It’s basically due to increased profitability from the carrier side over the past few years,” says Michael D’Altrui of Conover Beyer Associates Insurance in Manasquan. “To increase competitions and to gain new accounts…companies drop prices. It’s just part of the ebb and flow of the market.”