Market Spotlight: Condos

Carriers continue to tighten terms and/or reducing capacity in high-catastrophe zones such as the Florida condominium property market. In early June 2021, Amwins, the global insurance distributor, sent out an update on the Florida condominium market stating that insurance carriers are decreasing their presence or exiting the space, with most of the remaining carriers raising prices. Some had added more restrictive size requirements, while still others were tightening their underwriting guidelines. Then the Surfside building collapse occurred in late June 2021, further tightening the market. But for a large portion of the U.S., the habitational market is booming and poised for solid growth. More apartments are scheduled to be completed in 2022 than in any single year - the highest volume on record for the U.S. apartment market in at least 40 years.