By Ned Steele
Concerns that wind and flood insurance premiums for condominiums will skyrocket in 2025 may be exaggerated, according to a local insurance expert.
During a recent online presentation to the Siesta Key Condominium Council, Mike Angers, senior vice president at Brown & Brown Sarasota, expressed optimism about potential rate increases, despite the triple impact of Hurricanes Debby, Helene, and Milton in 2024.
“I think we’re going to do better than expected,” Angers said, noting that flood insurers have already requested an 18% increase. However, he advised condominium associations and managers to plan for a more modest 10% rise.
For wind coverage, Angers reported that rate increase requests so far have ranged from about 5% to remaining flat, with some cases even showing decreases. He emphasized that these estimates are preliminary and based on current data. January typically marks the period when insurance carriers renegotiate with re-insurers, which will provide a clearer outlook.
Two additional factors could still impact rates. One is the influence of claim history on individual premiums, driven by what Angers described as the industry’s “weird algorithms.” He pointed out that claim history could affect rates.
The other factor is the recent wildfires in Southern California, which could impact storm protection rates in Florida. Angers explained that re-insurance pools mix different types of coverage, so significant losses in one area, such as wildfires, could affect the entire insurance industry.
He also cautioned that a severe 2025 hurricane season could worsen the situation.
Regarding concerns about policy cancellations due to storm damage from Debby, Helene, and Milton, Angers reassured attendees that such fears might be overstated. “Know that you’re OK at least for a while,” he said, referencing existing government regulations designed to protect policyholders.
Angers, who specializes in insurance for condominium associations, warned about another challenge: securing permits from the county for rebuilding. “It’s going to be a huge problem,” he said. “They’re trying to figure out how to do it.”
He also shared several lessons from the 2024 storm season:
“Just about anywhere can flood,” noting that flooding can occur even miles inland.
“Understand your deductibles before storms,” predicting that most condominiums will likely need to impose special assessments on owners following storm damage.
“Have a reliable contractor ready.” Angers noted that many condominiums without a contractor in place were left waiting for assistance after the storms. Some believed they had “VIP” status, only to realize too late that they did not.
“Ensure access to cash.” Angers emphasized the importance of having cash available when disaster strikes on a large scale. He recommended that condominium associations secure a sufficient line of credit before storm season or be prepared to levy assessments on owners.
