In 2021, 19-year-old Orlando student Miya Marcano was tragically killed in her apartment by a 27-year-old maintenance employee with access to her apartment complex’s master key fob. In response to this tragedy and a growing trend of violence, Florida Governor Ron DeSantis signed Senate Bill 898, known as “Miya’s Law,” at the end of June 2022. (sources 1, 2)

The excess habitational market has been slowly hardening over the last several years, but it has accelerated over the last 2-3 years. Excess habitational premiums have been rising due to numerous factors including insurance carriers finding that they have been inadequately funded to cover the growing frequency and severity of claims in today’s litigious environment. There are now limited excess options within the first $10M, especially in the lead position. While some new capacity has started to filter into the marketplace over the last several months, few want to play in the lead $5M.

The deadly collapse of a 12-story beachfront condominium north of Miami Beach sent shockwaves through the Florida insurance market. One wing of the 40-year-old Champlain Towers in Surfside, Florida, crumpled to the ground suddenly on June 24, 2021, killing 98 people. Several carriers have exited the Florida property market as total settlements rise to more than $130 million, and others are pulling back on property and liability coverage. Faced with the potential for steep losses, insurers are raising rates and deductibles and becoming much more selective. In such a challenging market, it’s crucial to work with experienced, knowledgeable brokers who can provide guidance through a more complex, demanding placement process.

Will premiums increase? Are terms and conditions changing? What lines of business have limited markets? Which lines of business have excess capacity? Here’s what clients can expect in the marketplace for 2021 in a quick and easy to read reference guide.

The market for real estate casualty coverage is tightening significantly both for primary and excess with fewer standard markets willing to provide coverage. Rates, retentions and deductibles are all heading higher as claims costs and jury verdicts rise, particularly for habitability claims in California and action-over claims in New York City. To avoid those kinds of claims, underwriters are putting much greater scrutiny on submissions, particularly in litigation-prone areas. In such a fluid market, communication ahead of renewals is critical to manage client expectations. As placements become more challenging, working with experienced wholesale brokers is the key to finding the best coverage options.