Committee hears wide-ranging testimony on condo and townhome insurance as members seek options for rising premiums and shrinking markets

March 12, 2024 — The Minnesota House Commerce Finance and Policy Committee devoted the bulk of its March 12 meeting to an informational presentation and discussion about common interest communities (CICs) — condominiums, town-home associations and similar ownership structures — and the commercial insurance products those associations buy.

Why it matters: Committee members and witnesses described rising insurance premiums, higher deductibles, and shrinking insurer capacity in association markets. Witnesses said associations often purchase master policies in the commercial market (which is exempt from the department's routine filing review), leaving regulators with limited data on how many carriers serve the market and whether associations have moved to the surplus/excess market. Several testifiers warned that the gap could leave associations with fewer affordable options and less regulatory protection.

Key testimony and findings: Peter Brickwiddie, senior director…