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Florida Condo & HOA Legal Blog News & Updates on Condo & HOA Laws & Legislation in the State of Florida

Citizens’ to Increase Condo Insurance Premiums by 20%

Posted in Insurance

Citizens’ Property Insurance Corporation announced it intends to increase premiums by approximately 20% for buildings with a replacement value over $10 million.  Citizens’ Property Insurance is the state-run, not-for-profit insurer of ‘last resort’ in Florida, created in 1992 and operating pursuant to Section 627.351, Florida Statutes.  It insures over 23,000 commercial residential properties in Florida and recently issued an Agent Technical Bulletin notifying the public of its intent to increase premiums for policies affording coverage to properties valued in excess of $10 million.  Many policyholders will see rates increase by 20%.  Insurance premiums are often the most significant line item in a community association budget.  Communities already struggling with shortfalls and bad debt need to take the increases into account when preparing budgets for the upcoming year. This news comes at a time where two insurance companies were recently forced into receivership to be liquidated.  The Florida Department of Financial Services has been appointed as receiver for American Keystone Insurance Co., a company that entered the Florida market in 2007 and wrote policies covering homeowners, condominium owners and condominium associations.  According to the Department’s website “in accordance with the terms of the liquidation order, all policies are canceled at 11:59 p.m. on November 8, 2009, unless otherwise canceled earlier in the normal course of business.” The Department of Financial Services has been appointed and currently serves as receiver for 50 insurance companies.  Florida Insurance Guaranty Association (“FIGA”) will adjust and pay claims associated with the American Keystone policies, subject to its limitations and the claims filing deadline. FIGA protection is only available for admitted carriers.  If you are not aware of the differences between admitted and non-admitted (surplus lines) carriers, please contact your community association attorney or insurance professional.

  • Steven

    Can a hoa enter into a loan to pay for city water to be put in and charge the loan as a special assessment? The HOA did not help pay for my water treatment system when I moved in 5 years ago. What right do they have to provide city water to my home after the fact. Are current dues are only 300 per year, the loan was 300K.
    Not to mention that they did not follow due process!

  • KC Fanti

    Our POA by laws state
    “the property shall not be at any time be used for any business, professional or commercial purpoes, and no horses, cattle, poultry, or other livestock shall be kept or raised thereon.”
    A Director on the Board has registered at his home address for both his corporation name and his owner name his home address for conducting business as a boat broker. His corporation curent principal place of business has home addresss, and current address home address with the Secretary of State. PBC tax collector business name and owner name at his home address.
    The response that I got from the management company was “The association is aware of many residents use their home address as their business address. As such, many residents may receive mail, email, telephone calls, and faxes related to their business at their home address. While we cannot be certain without legal consultation, we do not believe that the restrictions intend to prohibit residents from receiving mail, email, telephone calls or faxes at their homes…The purpose of the use restrictions in the documents that you are referring to is meant to discourage business, professional or commercial traffic to the home that owuld be of a nuisance to the neighborhood…”
    What is your opinion on this subject. I feel the words “property shall not be at any time be used for any business, professional or commercial purposes..” is stating no business at all.

  • Mark

    In your blog post headline, you state that the increase will apply to “buildings” with a replacement value in excess of $10 million while in your discussion you say that the increase will apply to “properties” valued in excess of $10 million. Many community associations consist of multiple buildings each of which would be valued at less than $10 million while collectively the association property would be valued in excess of $10 million. Can you clarify whether the increase only applies to individual, free standing buildings valued in excess of $10 million such as an ocean front high rise or whether it applies to the total insured value for an individual policy?