What Your Board Should Know Before Insurance Renewal

Your association's insurance renewal is one of the most consequential financial decisions your board makes each year. For many Gulf Coast associations, the master property premium alone represents the single largest line item in the operating budget — and it directly affects what every unit owner pays in assessments.

Yet most boards approach renewal reactively. The agent sends a summary. Someone asks if the premium went up. It gets approved in the same meeting, often without meaningful discussion.

Here's how to do it differently.

Start 90–120 Days Before Your Renewal Date

The single most impactful thing a board can do is start early. Beginning the renewal process 90 to 120 days before your policy expiration gives your agent time to market your program to multiple carriers, and gives your board time to actually evaluate the options.

If your agent contacts you two weeks before expiration with a single option, you've already lost your negotiating position. Carriers need time to underwrite your risk, and your board needs time to understand what they're approving.

Action item: Put a calendar reminder 120 days before renewal. Contact your agent and confirm the marketing timeline.

Know What's in Your Current Program

Before you can evaluate a renewal proposal, you need to understand what you currently have. At minimum, every board member involved in the insurance decision should be able to answer:

What are your coverage limits? Specifically the total insured property value, liability limits, and umbrella/excess limits.
What are your deductibles? Especially the named storm deductible, which on a $50 million building could be $1 million to $2.5 million.
What type of property coverage do you carry? All-in or bare walls — and do your unit owners know the difference?
What does your declaration require? Your governing documents likely specify minimum coverage levels. Is your current program meeting them?
What's your loss history? Claims from the past five years directly affect your renewal pricing. Know what's on your loss runs.

If you can't answer these questions, you're approving a budget without understanding what you're buying.

Request a Side-by-Side Comparison

One of the most common frustrations boards have at renewal is receiving a single option with no context for why the premium changed or what alternatives were explored.

A good agent should provide:

Year-over-year comparison — what changed from last year's program and why
Multiple carrier options — at least two or three, where the market allows
Coverage difference highlights — not just premium numbers, but what you're getting for the money
Plain-language summary — a document your board members can actually read, not a 47-page policy form

If your current agent sends you a one-page summary and asks for a signature, that's not a renewal process. That's a transaction.

Understand Why Your Premium Changed

Premium increases don't happen in a vacuum. Your agent should be able to explain exactly what's driving any rate change. Common factors include:

Loss history — both your association's claims and the carrier's overall book performance
Reinsurance costs — carriers pass along increases in their own catastrophe reinsurance
Property value changes — if your insured value increased (it should, with construction costs rising), your premium will follow
Market conditions — carrier appetite for coastal property risk fluctuates with catastrophe seasons and litigation trends
Building condition — roof age, electrical systems, plumbing (particularly polybutylene pipe), and structural maintenance all factor in
Wind mitigation status — whether your building has been inspected and qualifies for credits

"Market conditions" as a standalone explanation is not sufficient. Ask for specifics.

Review Your Governing Document Requirements

This is one of the most commonly overlooked steps in the renewal process. Your declaration, bylaws, or condominium documents likely specify minimum insurance requirements — coverage types, minimum limits, and sometimes specific endorsements.

If your insurance program doesn't meet your governing document requirements, your board may be in breach of its fiduciary duty — and you might not discover it until a plaintiff's attorney does.

Common gaps we've seen:

Governing documents requiring $10 million in liability coverage while the policy carries only $5 million
Fidelity bond limits that don't meet the Florida statutory minimum
Missing ordinance or law coverage despite building code upgrade requirements
Umbrella coverage below the level specified in the declaration

Have your agent review your governing documents alongside your insurance program. If they haven't offered to do this, ask.

Ask About Your Wind Mitigation Status

For Gulf Coast associations, wind mitigation credits can meaningfully reduce your property insurance premium — sometimes by 20% or more. These credits are based on a professional inspection of your building's wind-resistant features:

Roof shape and covering
Roof deck attachment method
Roof-to-wall connections
Wall construction type
Opening protection (shutters or impact-rated glass)

If your building has never had a wind mitigation inspection, or if the last one was done before significant roof or window work, you may be leaving money on the table.

Budget for the Deductible

Your insurance program only kicks in after the deductible is met. For many Gulf Coast associations, the named storm deductible is 2% to 5% of the total insured property value. On a building insured for $50 million, that's $1 million to $2.5 million your association needs to cover before the carrier pays a dollar.

Key questions for your board:

Is the named storm deductible funded in your reserves?
If not, how will the association cover it? Special assessment? Line of credit?
Have you communicated the deductible exposure to your unit owners?
Do your unit owners carry adequate loss assessment coverage on their HO-6 policies?

The deductible is your association's financial responsibility. Plan for it before you need it.

Don't Let Renewal Be a Rubber Stamp

Insurance renewal isn't an administrative task — it's a governance decision. Your board has a fiduciary responsibility to ensure the association is adequately protected, and that starts with understanding what you're buying.

Start early. Ask questions. Demand clarity. And if your current agent can't or won't provide it, that tells you something too.

This content is provided for educational purposes only and does not constitute insurance advice. Coverage terms, conditions, and availability vary by carrier and state. Consult with a licensed insurance professional for guidance specific to your association.