Florida is — hands down — the single largest market for community association insurance in the nation. It is estimated that the state has over 65,000 community associations, and there is no slowdown in sight. Although condominium and homeowners' association insurance may be a demanding and difficult line to write, it can be rewarding, both in its own right and as an entree to present other products to community residents.

First, Know the Risk

As insurance professionals, our first obligation is to understand the risk. Condominium and homeowners' associations are legal entities similar to other commercial risks. However, association risks are also unique. They entail a group of individual members, many unsophisticated, with their own individual and separate legal interests, who share common legal interests with the other members of the association. The common interest can be as simple as a set of paint-color guidelines for a group of 20 homes to a complex set of conditions, covenants, and restrictions (CC&Rs) for a 20-story, 200-unit high rise with multiple shared amenities.

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