By: Adam Walser
Condo Boards may need to charge six-fold more for their services
TARPON PINES, Fla. – In the near future condo owners in Tampa Bay will be hit with a hefty homeowners insurance bill and also inspection expenses.
In the past few years, private insurers of homeowners have been forced to close or move out of state. Citizens Property Insurance – backed by tax payers – has also announced that it will be shedding thousands of insurance policies.
ABC Action News I-Team reports that thousands of Tampa Bay condominium owners could be hit twice by a law enacted after the Surfside collapse.
Dan Severson had previously served as the health and security officer of a nuclear reactor. He is the President of Green Dolphin Condominium Association in Ninth Fairway, and now he has retired. The association is just one of more than 27,000 in Florida.
Severson said, “My maintenance person and I visit this building once a week.”
They are situated in Tarpon Springs and were built from 1982 to 1985. The Gulf of Mexico is only two miles away.
The slabs are all made of concrete. They’re made entirely of metal, he added.
In 2019, insurance rates were 13 times higher.
“Our previous property insurance policy was more than 50 pages. Severson says that because of the exclusions in this policy and its high deductibles, “it’s as if there is no insurance at any.”
Quotes for this year’s event reached $600,000. It is 13-times the amount that the association paid out in 2019.
This could quadruple living costs in the condo. This would have a devastating effect on many elderly people with fixed incomes,” he added.
A law enacted after the Champlain Towers condominium collapsed at Surfside, FL in 2021 and killed 98.
“I have no doubt that there will be engineers on site to look into what occurred,” said Gov. Ron DeSantis addressed the media the next day at the incident during a news conference.
Inspecting and reserving funds is now required by law
Investigation revealed the columns of concrete and the deck around pool were constructed incorrectly and did not comply with building codes. The condo board of Champlain Towers was also warned by documents about the problems and recommended repairs but delayed them.
Jason Pizzo from Surfside has introduced legislation to require condo inspections throughout the state.
Florida is home to 4.5 Million condos. Pizzo proposed legislation to prevent this from happening again.
After 30 years, condos that are three-stories or higher must undergo a structural inspection.
The inspection period begins after 25 years for buildings near the coast.
It’s not the right way to do it
Severson, however, is worried that this law could force condo boards into putting millions of reserves in reserve.
It is required that structural integrity studies be completed before the year 2024 and funds be set aside for any future major repair work, such as replacing the roof and the load-bearing and foundation walls.
“Nobody would like to see another Surfside. Nobody wants buildings that are unsafe. Severson said, “They are doing the wrong thing.”
Seversen believes that the worst possible scenario will force him to increase his monthly fees from $500 per month to $3,000. This would make some residents move. Dues increases would make selling units at the complex near impossible.
Severson noted that the Social Security benefit received by an average citizen is almost double.
Severson settled for an insurance policy worth $98,000 with Citizens Property Insurance after having paid $262,000 in 2016 to replace the roof of a new building. Severson told his members that the association would be assessing nearly $3,000 to cover these insurance hikes and repairs.
He fears that next year, the association will have a much more difficult financial outlook.
“I have asked my attorney what will happen if I refuse to do anything.” Severson said that the lawyer told her, “Well you could end up in jail.”
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You and your condo are equally important so come to https://ncrestoration.ca/. If you work with professionals, who know the value of cost-effective options, then it is possible to achieve desired improvements while avoiding undue financial stress. Do not hesitate to reach out to local Toronto experts to explore your options. Take proactive measures to reduce the cost of any possible damage to your condo or to enhance its functionality.
