Why More Insurance Agents Doesn’t Mean More Insurance Bids for Condominiums and HOAs

One of the most common requests condominium and HOA boards make is:

“We’d like to get three bids for our insurance.”

It sounds logical. In most industries, more vendors mean more competition and better pricing.

But insurance works differently.

Unlike landscapers or contractors, insurance agents don’t provide the coverage themselves — they access insurance carriers that actually underwrite the policy. And in most cases, once a broker approaches a carrier for a quote, that carrier is effectively “blocked” from other brokers.

This process, known as market blocking, means:

• The first broker to approach a carrier secures that market
• Other brokers may be unable to access the same carrier
• Multiple agents often end up competing for the same limited group of insurance companies

As a result, using more agents can actually lead to:

• Fewer total carrier options
• Less competitive proposals
• More confusion during the renewal process

For condominiums and HOAs, where insurance has become increasingly specialized and complex, the real goal should not be finding more agents — it should be gaining access to more qualified insurance markets.

That’s why many associations are better served by:

• Working with one experienced broker specializing in condominiums and HOAs
• Ensuring the policy is broadly marketed to multiple carriers
• Comparing several carrier options side-by-side

Insurance decisions should also involve more than just premium comparisons. Coverage differences, deductibles, exclusions, carrier stability, and claims handling all matter significantly.

The bottom line:

More agents does not automatically mean more competition. In many cases, it means fewer meaningful options.

The best insurance outcomes for condominiums and HOAs come from broad market access, experienced professionals, and a structured renewal process — not simply collecting more business cards.