Florida high-rise condo owners feel financial pinch with rising HOA fees and insurance costs
High-rise condominiums in Florida are having financial hardships as new structural mandates and soaring insurance costs take a toll on their budgets. Recently, individual condo homeowners with Citizens Property Insurance received a jolt when they were mandated to obtain flood coverage for their units, regardless of being as high as 10 stories above ground. The requirement for Citizens’ condo flood insurance was passed during last year's second legislative special session on property insurance. A spokesperson for Citizens explained that the separate flood insurance measure aims to mitigate potential litigation disputes between wind and flood damage in future storms. The state-backed insurer now oversees just under 1.2 million policies. For condo homeowners, this new mandate means added expenses, further burdening their finances. The increase in flood coverage costs has been noticeable, with one high-rise HOA board member stating that their building's flood insurance premium surged by 14%, rising from $97,000 to $110,000 between 2021 and 2022. Additionally, their property insurance premiums skyrocketed by a staggering 77%, surging from $106,000 to $187,000 during the same period. The Surfside Condo Collapse tragedy in 2021, which claimed nearly 100 lives, triggered Florida lawmakers to pass Senate Bill 4D. This bill now requires milestone inspections for condominiums, ensuring safety measures are in place. Furthermore, it mandates that each association maintains sufficient reserves to cover any necessary repairs identified during the inspections. Amid these challenges, high-rise condo communities in Florida are navigating a precarious financial landscape while prioritizing the safety and well-being of their residents. The ongoing efforts to comply with new mandates and manage escalating insurance costs underscore the urgency to address the complexities of high-rise living in the state's dynamic environment.