Florida Legislators Propose Condo Roof Insurance Reform to Curb Rising Premiums

Florida state legislators are making strides in property insurance reform with the introduction of House Bill 655 and Senate Bill 802, targeting condominium roof coverage. Democrat Hillary Cassel and Republican Ana Maria Rodriguez are spearheading this bipartisan initiative, aiming to establish a windstorm pilot program exclusively for Citizens Property Insurance Corp. The proposed legislation focuses on providing actual cash value (ACV) coverage for condo roofs damaged in storms, as opposed to the current full replacement value approach. This shift is seen as a potential solution to the soaring insurance premiums plaguing Florida condo owners and associations.

The pilot program, however, is not without its critics. Michael Carlson, president of the Personal Insurance Federation of Florida, points out a significant drawback. While ACV coverage might lower premiums, it could leave condo associations financially burdened with out-of-pocket expenses for roof repairs. The bill requires a majority vote within a condo association to opt into the pilot program. The proposal comes in response to recent legislative efforts enhancing condominium safety and financial stability, particularly after the 2021 Champlain Towers South collapse. This initiative is part of Florida’s broader strategy to address the challenges facing condominium owners and associations, with the regular legislative session set to commence on January 9, 2024.