WEST PALM BEACH, Fla. — A pair of bills recently filed at the Florida State Capitol are aiming to help condo owners afford wind coverage by allowing cash-value roof coverage.
“Our condo is struggling,” Gerald Slan told WPTV.
Slan lives in a condominium on Singer Island. For Slan and his neighbors, the rising cost of insurance has been top of mind this year.
“The premium is very high," he said. "The timing of the premium payments creates a problem,” he said.
According to a new study by Lending Tree, Floridians pay the highest disaster insurance premiums in the nation.
“When we looked at the actual cost of insuring a home for disasters, we found Florida led the nation, something like 66% higher than the national average," Rob Bhatt, an analyst with Lending Tree, told WPTV. "We also found that Floridians pay the highest percentage of their household income on insurance from these disasters.”
Wind coverage is part of that, and two recently filed bills at the state capitol are aiming to help some Floridians, condo owners, by creating a pilot program requiring state-owned insurer Citizens Property Insurance Corporation to cover the roofs of condo buildings at actual cash, rather than at full replacement cost.
“Basically, actual cash value means that they’re going to depreciate the value of the roof to its current condition,” Robert Norberg, an insurance agent with Arden Insurance in Lantana, said.
Norberg told WPTV that means condo owners can opt for a lower premium.
"Right now, they have to provide replacement costs, per the condo law. That's what's driving this whole thing,” Norberg said. "If they're allowed to say, hey, we can take a actual cash value, or ACV, then they can be offered a lower premium by the insurance carrier. So, that should roll down to the association and all their dues and fees."
To be eligible, condo associations must have a majority vote from their members and undergo a roof inspection every two years.
Slan told WPTV he feels this is a step in the right direction and is hopeful the bills pass.
“Premiums for our condo association have gone through the roof over the last couple of years," Slan said. "They were high to begin with and now they’ve more than doubled.”