Recent filings at the Florida State Capitol introduce a pair of bills aimed at alleviating the financial burden on condo owners struggling with the high costs of wind coverage. The proposed legislation focuses on allowing cash-value roof coverage, with a pilot program designed to benefit condo owners by requiring state-owned insurer Citizens Property Insurance Corporation to provide coverage for condo building roofs at actual cash value instead of full replacement cost.
Gerald Slan, a resident of a condominium on Singer Island, emphasized the challenges faced by condo owners due to soaring insurance premiums. The bills respond to the pressing issue highlighted in a study by Lending Tree, which revealed that Floridians bear the highest disaster insurance premiums in the nation, exceeding the national average by 66%. The bills aim to address the disproportionate impact on household income by specifically targeting wind coverage.
Robert Norberg, an insurance agent with Arden Insurance in Lantana, explained that the concept of actual cash value involves depreciating the roof’s value to its current condition. This approach provides condo owners with the option to choose a lower premium. Norberg noted that the current requirement for replacement costs, as per condo law, is a driving factor in the quest for alternative solutions.
The proposed legislation offers condo owners the flexibility to opt for actual cash value, potentially resulting in lower premiums offered by insurance carriers. This, in turn, is expected to benefit condo associations and reduce the financial burden on their members.
For eligibility in the pilot program, condo associations must secure a majority vote from their members and undergo a roof inspection every two years. While the bills navigate the legislative process, condo owners like Gerald Slan express hope that these measures will be a positive step in addressing the skyrocketing premiums, providing much-needed relief to condo associations grappling with financial challenges in recent years.
