A proposed bill in Florida could jeopardize the state-backed insurance coverage of thousands of condominium residents. The bill, introduced by State Representative Vicki Lopez, targets condo associations that have failed to complete mandatory structural integrity reserve studies (SIRS). These studies are designed to assess the structural safety of buildings and ensure that sufficient financial reserves are available for necessary repairs.
The original deadline for completing these studies was December 31, but many condo associations have yet to comply. Should the bill pass, condo owners could face serious consequences, including the loss of state-backed insurance. The SIRS mandates that condo associations evaluate the condition of their buildings’ structures, allocate financial reserves for potential repairs, and ensure that necessary maintenance is performed. Condo owners are required to contribute to these reserves.
According to a recent report, only 44% of condo buildings in Miami-Dade County and 41% in Broward County have completed their required studies. If the bill is approved, condo owners in these regions might struggle to secure insurance coverage in an already challenging market. Citizens Property Insurance currently covers over 18,000 condo buildings across Florida, with a majority of those in Miami-Dade, Broward, and Palm Beach counties. If a significant number of condo owners lose their coverage, those who retain it may face substantial premium increases to reflect the higher risks.
