A new bill proposed in Florida could jeopardize the state-backed insurance coverage of thousands of condominium residents. The legislation targets condo associations that have not yet completed mandatory structural integrity reserve studies (SIRS).
Introduced by state Representative Vicki Lopez, the bill aims to penalize condo associations that have not finished the required studies. These studies are designed to evaluate the structural safety of buildings and ensure that sufficient financial reserves are in place to cover necessary repairs. Despite the original deadline of December 31, many condo buildings have not yet complied with the SIRS mandate. If the bill passes, condo owners could face serious consequences.
The SIRS mandate requires condo associations to conduct a thorough assessment of their building’s structural condition. They must then establish financial reserves to specifically address repair needs and ensure that proper maintenance procedures are followed. Condo owners are required to contribute to these reserves.
A recent report from the Miami Association of Realtors showed that only 44% of condo buildings in Miami-Dade County and 41% in Broward County have completed their required studies. If the proposed bill becomes law, condo owners in these areas may struggle to secure insurance coverage in what is already a challenging market.
Citizens Property Insurance currently covers over 18,000 condo buildings throughout Florida, with more than half of those located in Miami-Dade, Broward, and Palm Beach counties. If a significant number of condo owners lose their coverage, those who manage to retain it are likely to experience substantial increases in their insurance premiums due to the elevated risk.
