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WE NEED OTHER OPTIONS: WIND COVERAGE
By
Rafael Aquino
Published December 13, 2023
In areas like South
Florida, the increasing cost of wind coverage insurance isn't just a
matter of concern; it's a critical issue affecting many
associations. This isn't merely a formality – it's about protecting
properties and fulfilling fiduciary duties. Without such coverage, a
catastrophic storm's legal and financial consequences could be
severe.
Effective
communication with residents is critical, as higher insurance costs
directly impact them. Additionally, the insurance market, like real
estate, is cyclical. Current rate increases may attract more
insurers, offering better options for communities in the future.
However, no one knows when that time will come.
A recent conversation
with a public adjusting expert brought up an unconventional idea:
underinsurance. With the low likelihood of total building
destruction and rising construction costs, could insuring buildings
for less than their total value be a viable option? Current norms
require buildings to be insured at 100% of replacement cost, but we
must ask: who benefits most from this? Is there room for
flexibility, especially for buildings struggling with affordability?
While we're not
advocating for associations to underinsure, starting a conversation
on these challenges is vital. We must consider all possibilities,
including the risk of pushing associations into bankruptcy or condo
termination due to increased insurance costs and required reserves.
Innovative and collaborative solutions are crucial in the coming
years.
We'd love to hear
your thoughts. Would you consider options like underinsurance with
higher deductibles if they were available?
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As the Co-Founder and CEO
of Affinity Management Services, Rafael P. Aquino leads his team to
redefine excellence. They serve community associations
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and effectively with
dedication and passion. Rafael’s energy and positive
spirit is the foundation of Affinity Management
Services’ company culture, which instills enthusiasm and
excitement when providing expert advice to its board
members and relieving the day-to-day burdens of running
a community association.
Since 2007, Rafael has
developed a work culture that values responsive and
high-quality services. He has led his team by following
a proactive vs reactive philosophy. The same approach
Rafael instills in the day to day operations of each
association. Today, Affinity Management Services
maintains its success and benefits as a result of the
foundation Rafael has built and continues to foster by
providing educational seminars, continuing education
classes for association managers and board members
alike.
Rafael and his team help condominium and homeowners’
associations save money and improve their communities.
His calm, personable, and service-oriented nature helps
him to establish strong relationships with ease. Rafael
is known as a sincere and honest leader who looks out
for the best interests of his clients and communities,
and he strongly advocates for their needs. His role
requires coordination and communication, as such he
takes logical and intelligent steps to approach
challenges head-on.
As a graduate of Florida International University’s
electrical engineering program and a licensed community
association manager, Rafael’s education and skills equip
him with unique insights to tackle complex problems
through critical thinking. He understands how each
component within a system works together in order to
effectively arrive at solutions, techniques, and
conclusions. Therefore, as he manages the multiple
challenges of running a community association management
company, he understands how each property is its own
unique system and tailors’ specific services to assure
that all their needs are met.
For more information about Rafael P. Aquino and Affinity
Management Services please visit
www.ManagedByAffinity.com or call 1-800-977-6279
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Doral Office: 8200 NW 41st ST
Suite 200
Doral, FL 33166
Broward Office: 150 S Pine Island RD Suite 300
Plantation, FL 33324
O: 800-977-6279 ● F: 305-325-4053
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