Securing wind insurance for condominium associations has become a formidable challenge in recent years. The insurance coverage landscape has evolved, transforming a once straightforward process into a complex and demanding endeavor. Let me share a real-life story that highlights the hurdles we encountered and sheds light on the evolving nature of insurance coverage for condo associations.

In the heart of Miami's Brickell neighborhood, a condominium offered mesmerizing waterfront views to its residents. However, the condo association faced a daunting battle in obtaining wind insurance coverage. As we embarked on this journey, it became clear that the days of simple deductibles and total replacement cost calculations were over.

Associations used to determine their coverage based on the building's replacement value, the mitigation report findings, and a fixed deductible percentage. If damage occurred to the building because of a storm, adjusters would be assigned a presumed amount that would be provided to the association. If the association didn't agree, the battle with the carrier would commence with the representation of a public adjuster or legal and, in some instances, both. In some cases, the claim process could take months, if not years.

However, in the case of the Brickell property, the association's current carrier chose not to renew the policy, leaving us with no choice but to explore the open market. Carrier after carrier declined to provide coverage, leaving us with limited options. That's when we came across an unconventional solution proposed by an agent we work with—a parametric wind policy.

A parametric wind policy is insurance coverage designed to protect against financial losses from wind-related events such as hurricanes, tornadoes, or strong windstorms. Unlike traditional insurance policies that require post-loss assessments or lengthy litigation processes, a parametric wind policy pays out a predetermined amount based on predefined parameters, such as wind speed or a named storm, regardless of the losses suffered. The payout amount is often determined by the hurricane's category, with higher categories resulting in larger payouts. The policies clearly outline these predetermined amounts, ensuring transparency for the insured parties, even if no damage occurs. However, it is essential to note that these policies also come with risks because payment is a predefined amount if a storm hits within a certain distance of the property.

In conclusion, obtaining wind insurance for condominium associations has become a Herculean task. Condominium associations face numerous challenges in these trying times, including escalating costs of services, repairs, and mandatory reserves. However, amidst the storm, there is hope. Collaboration among condo associations, community association managers, and insurance providers becomes crucial. Strong partnerships and cooperation are essential in navigating these challenges and finding innovative solutions. The Brickell condominium story serves as an example of the hurdles faced by managers in their relentless pursuit of coverage. Despite the challenges, all parties must approach them with unwavering determination, creativity, and a shared commitment to finding innovative solutions. Through resilient partnerships, we can weather the storms and safeguard the vibrant communities we are honored to serve.