Florida Condo Association Insurance Increases

Condo owners in Panama City Beach are facing a tough situation as they deal with significant increases in association dues, primarily due to rising costs for condominium association insurance and the necessity for structural reserve inspections. These spikes in insurance rates are happening alongside the withdrawal of private insurance carriers from the Florida market.

A graph, utilizing data from condo association budgets and insurance policies, aims to visually demonstrate to condo owners the considerable effect of insurance premiums on their yearly dues.

A notable increase has been observed in many buildings, where insurance premiums have escalated to eight times their 2019 rates. The main contributors to this rise in association dues are insurance and structural reserve costs. Although some buildings have successfully navigated these increases, others have faced significant hikes in their dues, which have played a key role in the recent decrease in Panama City Beach condo sale prices.

Seychelles, for example, experienced a 51% increase in insurance costs recently. Similar cost increases are being witnessed by many other associations throughout Florida.