Rising Insurance Costs
COMMUNITY ASSOCIATIONS GRAPPLING WITH RISING INSURANCE COSTS
When the board members of Nordic Inn began shopping for insurance in October, they anticipated some difficulty in obtaining coverage for the Lincoln, New Hampshire condominium. A fire (work of an arsonist) had resulted in a $4 million loss the prior year, and with the insurance industry still reeling from the effects of the September 11 terrorist attacks, "we knew things would be a little strange," Dick Edry, a Nordic board member and an investor-owner of several other condominium units, recalls.
But they didn't know just how strange. Sixteen insurance agents later and just past the expiration date for their existing coverage, Nordic finally negotiated a renewal policy, and saw their annual insurance premium jump from $30,000 with a $1,000 deductible to $120,000 with a $10,000 deductible.
