This regularly scheduled column is written by Eli Tucker, Arlington-based Realtor and Arlington resident. If you would like to work with Eli and his team in Northern Virginia and the greater D.C. Metro area, you can reach him directly at [email protected].

Question: How can my condo Association meaningfully reduce its expenses?

Answer: The Master Insurance policy is often the largest, or one of the largest, annual expenses for a Condominium Association and managing it is critical to keeping stable condo fees. Recently, skyrocketing insurance premiums have put tremendous pressure on Association budgets, but good news has finally arrived for condo owners and Boards.

Today’s column is written by Andrew Schlaffer, Founder and President of ACO Insurance and someone I recommend to any condo Board that wants to inquire about their existing or a new master insurance policy (condo or HOA). You can reach Andrew at [email protected] or (703)595-9760.

Take it away Andrew…

After three to four years of double-digit renewal increases, the condominium insurance market is genuinely improving. Commercial property insurance premiums nationally declined in early 2026, for the first time since 2017, according to a survey by The Council of Insurance Agents & Brokers.

For well-maintained, low-claim condo buildings, we’re seeing typical renewal increases of just 2% to 5% — a dramatic change from the 10%+ increases that were common over the past several years. Water damage remains the leading source of claims for the DMV’s aging condo buildings, followed by fire and wind/hail, but the overall cost trend is heading in the right direction for many communities.

Reinsurance is Driving the Cost Control
Much of this relief traces back to reinsurance — the backup coverage insurance companies themselves buy to protect against catastrophic losses. Reinsurance capital is at record levels, and reinsurance rates fell by double digits over the past year as capacity grew, according to industry reinsurance renewal reports. As reinsurers compete harder for business, carriers are passing some of those savings down to condo associations in the form of smaller increases — and in some cases, outright rate decreases.

Cost Control is not Applied Equally
That said, underwriting scrutiny remains high, and not every building benefits equally. Carriers continue to favor newer, fire-resistive buildings with full NFPA 13 sprinkler systems and newer roofs. Older, garden-style condos with a single means of egress and no sprinklers remain a difficult class to place, since the carrier market for these buildings is thinner, competition is lower, and claims frequency tends to run higher.

If your building falls into this category, it’s generally best to stay with your current carrier unless you receive a double-digit increase — shopping the account in this segment can do more harm than good.

The umbrella/excess liability market hasn’t seen the same relief. Nuclear verdicts (jury awards over $10 million) continue rising sharply, keeping capacity tight and rates firm, according to 2026 liability market data. Expect umbrella/excess liability increases in the 10% to 30% range depending on your community’s loss history and risk profile.

Pillars of Insurance Reviews
Condo insurance reviews require a holistic approach, so it’s important to break the cost into a few distinct categories: insurance premium, deductible expense, and out-of-pocket costs. To effectively accomplish long-term savings, all three of these categories need to be considered and addressed with a qualified insurance professional.

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