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   efficiently

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

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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