By: Adam Walser
Condo fees could be increased sixfold
TARPON Springs, Fla. – Condo owners around the Tampa Bay could be faced with a double whammy of homeowners insurance costs and inspection fees in the months to come.
Private homeowners insurers have either failed or relocated out-of-state, resulting in the rate hike. Citizens Property Insurance, a taxpayer-funded company, has announced its plans to cancel thousands of policies.
ABC Action News I-Team learned, at the same time that the new law passed following the Surfside Condo collapse could have a double-whammy effect on thousands of condo owners in Tampa Bay.
Dan Severson was a former health and safety officer for a nuclear plant. In his retirement, Dan Severson is looking after the well-being of 96 condominium owners in the Ninth Fairway at Green Dolphin Condominium Association. This is one of the 27,000 condominium associations in Florida.
Severson: “The maintenance man and I walk this building each week,” Severson stated.
These units, which were constructed between 1982-1985 and located in Tarpon Springs about 2 miles away from the Gulf of Mexico, are a great investment.
All of them are concrete slabs. “They’re all made of metal,” said he.
Quotes for insurance are 13 times more expensive than they were in 2019.
Our last policy for property insurance was fifty pages. Severson explained that the policy was so full of high deductibles and exclusions, it almost felt like there was no coverage at all.
The association spent $600,000. That’s 13 times more than what it paid last year.
It could quadruple your condo’s cost to live. “That would be disastrous for many seniors on fixed incomes,” said he.
Another big issue is a new law passed in the wake of the collapse of Champlain Towers in Surfside FL in 2021 that killed 98 people.
Governor Ron DeSantis said, “I’m sure that engineers will be looking into this situation to determine what went wrong.” Ron DeSantis spoke at the site during a briefing to the press the day following the collapse.
New law mandates inspections and reserves funds
The investigation found that the concrete columns and pool deck were not constructed according to building code. The documents also show that the Champlain Towers Condo Board was informed of problems, but did not make recommended repairs.
Jason Pizzo of Surfside introduced a state-wide condo inspection bill.
There are about 4.5 millions condos throughout Florida. Pizzo, who proposed the bill, said that we must ensure this does not happen again.
A special session was held last year to pass a law requiring condos with three or more stories be inspected for structural integrity 30 years following construction, and then every 10 years thereafter.
Inspections begin at 25 years if the building is located near a coast.
They’re doing it all wrong
Severson is concerned that the new law may force condominium boards to set aside millions in reserves.
By the year 2024 structural integrity studies will be complete, as well as the funding of reserve funds for major future repairs such a roof replacement, wall load bearing, or foundation.
Nobody wants another Surfside. No one wants to live in unsafe buildings. Severson stated that they were doing it incorrectly.
Seversen is concerned that a worst case scenario would force the association to increase monthly dues to $3,000 per month, which could cause some residents to leave. This increase would make it nearly impossible for the units to be sold.
Severson stated that “that’s nearly twice as much money the average American receives from Social Security.”
Severson managed to get a Citizens Property Insurance policy at $98,000, but not before paying over $262,000 for the roof replacement on a 2016-built building. Severson stated that his association will be proposing an assessment of nearly $3,000 this year in order to pay for the insurance and repair increases.
The financial situation of the association could get worse in future years.
I asked my lawyer what she would do if we refused to obey. Severson asked the lawyer what would happen if we refused to comply. She replied, “Well, you might go to prison.”
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