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FLORIDA - A new proposed bill in Florida could leave thousands of condo residents without state-backed insurance if their associations fail to complete mandatory structural integrity reserve studies (SIRS).
Introduced by state Rep. Vicki Lopez, the bill would penalize condo associations that have not finished these required studies, which assess the structural safety of buildings and ensure financial reserves are in place for necessary repairs.
The original deadline for completing these studies was December 31, but many condo buildings have not yet complied.
As a result, condo owners could face significant consequences if the bill passes.
The SIRS mandates condo associations to assess the condition of the building's structure, set aside financial reserves for repairs, and ensure that necessary maintenance is done.
Condo owners are required to contribute to these reserves.
A recent report by the Miami Association of Realtors revealed that only 44% of condo buildings in Miami-Dade County and 41% in Broward County have completed their required studies.
If the proposed bill is approved, condo owners in these regions could find themselves scrambling for insurance coverage in an already strained market.
Currently, Citizens Property Insurance covers over 18,000 condo buildings across the state, with more than half of those in Miami-Dade, Broward, and Palm Beach counties.
If many condo owners lose coverage, those who retain it may face significant increases in premiums to cover the heightened risks.