Yet many signs of caution, further action needed Demotech issues a strong report card for its Florida property insurance companies, another carrier enters the marketplace, the reality check that we’re not out of the woods yet, plus the NAIC calls for states to collect more granular data to find property insurance affordability and availability gaps. It’s all in this week’s Property Insurance News. A Financially-Stable Market: Demotech, the financial ratings and analytics firm that reviews the financial stability of many of Florida’s domestic property insurance companies is out with almost all of its mid-year reviews. Its July 28 website update as of July 28 lists Financial Stability Ratings of “A” or higher with just a few firms reportedly awaiting review. Market Expansion: The Florida Office of Insurance Regulation (OIR) made news this past week by announcing that it had authorized a second property insurance company this year to begin writing

ARTICLE CONTRIBUTED BY: LISA MILLER, CEO OF LISA MILLER & ASSOCIATES Q: Why are Florida’s property insurance rates the highest in the nation? A: Three reasons: weather, litigation, and reinsurance. Florida is a peninsula that sticks out into the warmest ocean and gulf currents in the nation. It has 1,300 miles of coastline with nearly 75% of Florida’s 22.5 million residents living within 15 miles of a coast. We are a hurricane magnet. Insurance rates are priced to that risk and we can’t do anything about the weather. On litigation, the Florida Legislature did its best this year to provide long term consumer rate relief with House Bill 837, the historic tort reform bill. Florida has 7% of the nation’s homeowner’s insurance claims yet 76% of the nation’s homeowner’s insurance lawsuits. Those lawsuits have been driving rate increases. That leaves reinsurance, which is simply “insurance for insurance companies” to help

ARTICLE CONTRIBUTED BY: OSCAR BORRAS, REGIONAL VICE PRESIDENT AT KW PROPERTY MANAGEMENT & CONSULTING In today’s ever-evolving economic landscape, associations are grappling with the challenge of balancing rising costs of goods, services, insurance, and wages while ensuring the smooth functioning of their operations. As guardians of these communities, it falls upon us to master the art of communicating budget adjustments effectively. Surprisingly, this endeavor need not be as daunting as it may seem at first glance. What it requires, however, is a strategic shift in our conventional approaches. Each association operates within a unique set of dynamics and socio-economic influences that dictate the effectiveness of communication. Nonetheless, there are key steps we can undertake both beforehand and during the communication process to enhance the reception of crucial messages among our membership. Embracing the “Be ‘OPEN’” Framework In our pursuit of excellence in communication, we present the distilled best practices encapsulated

ARTICLE CONTRIBUTED BY: ROXANA DORIGO, EXECUTIVE VICE PRESIDENT OF FINANCE, KW PROPERTY MANAGEMENT & CONSULTING Florida community associations and property managers are grappling with the combined challenges of budgeting for rising insurance costs, funding reserves, elevated interest rates and addressing projects that have been deferred to comply with new state laws. Good news, board members and managers do not need to combat these obstacles alone. At our KWPMC managed communities, we have invited insurance agents for town hall meetings to ensure board members and owners are armed with as much timely information and guidance as possible before budgets are finalized. Agents predict insurance costs will rise between 25% and 30% next year – and possibly higher, if another major storm like Hurricane Ian occurs. However, insurance is hyper-specific to each building. Coastal buildings are likely to see bigger premium increases than inland buildings, for instance. If a building is plagued

ARTICLE CONTRIBUTED BY: TRISH BAKER, GENERAL MANAGER, AT KW PROPERTY MANAGEMENT & CONSULTING The annual budget season can often be a complex and challenging process. With careful planning and collaboration, however, it can become a smoother and more effective endeavor. Here are best practices from one of KWPMC’s lifestyle General Managers, to successfully navigate through your HOA budget: Timeline: It’s important to start your budget preparations early, while keeping in mind that budgeting shouldn’t be confined to a specific time of year. Instead, consider budgetary implications throughout the year to avoid any last-minute surprises. Involve the entire board in the budgeting process. This collective effort brings diverse perspectives, leads to more well-rounded decisions, and establishes a clear timeline. Clearly communicate the timeline for the budget process, including when budget workshops will take place and when approval meetings are scheduled. Record budget workshops, review sessions, and important announcements via video. Share