BocaNews.com:High cost of insurance giving condo associations a real headache
As president of the Casa Del Rio Condominium Association in Boca Raton, David Trimble says that he and the other 260 condo owners are actively looking for a way to curb their skyrocketing association insurance rates.
“We haven’t filed a claim in about nine years. Our insurance rates have gone up about 40 percent over the past five years,” Trimble said.
The association currently pays about $105,000 per year to insure their property.
“It is supposed to have gone down by $4,000. As far as I’m concerned, it’s legal thievery,” he said.
Trimble said he is awaiting a decision that would allow the property to be re-classified as not being within a flood zone. He hopes it makes a difference in their insurance rates.
Trimble said their rates have gone up as much as $20,000 in previous years and last year were increased by about $9,000.
He blames the high insurance rates on a number of factors – including costs that are passed on to the customers.
“A hot water heater exploded in one of the units and the contractor cost $4,500 but were only here two and one half hours to clean it. They charged the insurance company for that,” he said.
Mostly, Trimble says there’s just not enough competition between insurance providers.
“I’ve been told they’ve signed a pact that they won’t take customers from each other and that puts a monopoly on things,” he said.
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But...but...that would be (gasp)...WRONG!