Over the past several years, South Florida condo associations have faced a challenge that’s unlike anything most boards have dealt with before: their insurance carrier sending a non-renewal notice. Major insurers have been exiting or dramatically reducing their Florida exposure, leaving thousands of associations scrambling to find replacement coverage — often at dramatically higher prices and with less favorable terms.
If your carrier has sent a non-renewal notice, or if you’re worried about what happens if they do, here’s what you need to know and exactly what steps to take.
Why Carriers Are Leaving Florida
The Florida property insurance crisis has been building for years, driven by a combination of factors:
- Hurricane losses — Irma, Michael, Ian, and multiple other storms have generated billions in claims across South Florida
- Litigation costs — Florida has historically had a disproportionate share of property insurance lawsuits, driven in part by assignment of benefits abuse and attorney fee multipliers
- Reinsurance costs — The global reinsurance market has hardened significantly, making it more expensive for carriers to offload risk
- Construction cost inflation — Rising rebuild costs mean larger claim payouts on the same policies
Florida’s legislature has taken steps to address the litigation environment, but the market remains difficult — particularly for coastal and high-rise properties in Miami-Dade, Broward, and Palm Beach counties.
Important: A non-renewal notice is not a cancellation. You still have time to find replacement coverage. The key is acting immediately — not waiting until the last few weeks before expiration.
What to Do When You Receive a Non-Renewal Notice
Step 1: Call Your Agent Immediately
The moment you receive a non-renewal notice, contact your insurance agent. A specialist agent with established carrier relationships can begin approaching alternative markets right away. Time is your most valuable asset in this situation — the earlier you start, the more options you have.
Step 2: Gather Your Property Information
Alternative carriers will need detailed information about your property to quote. Have the following ready:
- Current policy with declarations page
- Building age, construction type, and square footage
- Roof age and type, and any recent replacements
- Wind mitigation inspection report (if available)
- Five-year claims history
- Current replacement cost appraisal (if available)
- Recent financial statements and reserve study
Step 3: Understand Your Full Market Options
The Florida property insurance market has several layers, and a specialist agent can access all of them:
- Admitted carriers — Licensed Florida insurers subject to rate regulation. Fewer options available for large condo buildings in coastal areas.
- Surplus lines carriers — Non-admitted carriers that can write risks admitted carriers won’t. Less regulatory protection but often the only option for difficult risks.
- Citizens Property Insurance — Florida’s state-backed insurer of last resort. Available when private market options are unavailable or unaffordable, but comes with its own limitations and depopulation risks.
Step 4: Consider a Layered Program
For large or high-value condo buildings, a single carrier may not be willing or able to write the full replacement cost value on one policy. A layered program — where multiple carriers share the risk at different coverage layers — is common in the current market and can provide adequate total coverage even when no single carrier will write the full amount.
Understanding Citizens Property Insurance
Citizens is Florida’s insurer of last resort and an important safety net for associations that can’t find private market coverage. However, there are important things boards should understand:
- Citizens coverage limits and terms may differ from private market policies
- Citizens policies are subject to periodic depopulation — your policy may be assumed by a private carrier
- Citizens rates have been increasing significantly as the state works to reduce its exposure
- Citizens may not write all coverage types your association needs — you may still need separate flood, D&O, and liability policies
Don’t let your policy lapse: If you receive a non-renewal and haven’t secured replacement coverage by the expiration date, your association will be uninsured. This is a catastrophic risk and a violation of Florida condo statute. Start the replacement process the day you receive the notice.
Non-Renewal Response Checklist
- Call your agent immediately upon receiving the notice
- Note the exact expiration date — this is your hard deadline
- Gather all property documentation for remarketing
- Ask your agent to approach both admitted and surplus lines markets
- Request quotes from at least three different carriers or programs
- Evaluate Citizens as a backstop option if private market quotes are unaffordable
- Notify the board and document all actions taken
- Bind replacement coverage before expiration — never allow a lapse
A carrier non-renewal is stressful, but it’s manageable with the right agent and enough lead time. If your association has received a non-renewal notice or you want to proactively review your carrier’s stability before renewal, reach out for a free consultation.