Downbeach snowbirds taking notice. Florida commercial property insurance rates are expected to go up by almost 50% this year.
Will insurance rates doubled? Certainly possible. Won’t be out of the question, say those within the property insurance industry.
Many Florida real estate owners and insurance industry insiders already looking for alternatives.
Visit The Real Deal for potential workarounds.
Condo Insurance Crisis in South Florida Could Push Owners to Sell.
Growing pressure on Condo associations. Looming deadlines to make repairs and comply with new state laws requiring condo associations and HOA’s to properly fund their financial reserves.
The new law goes into effect at end of 2024.
Insurance rate hikes are in response to the deadly Surfside condo collapse two years ago that killed 98 people. The tragedy resulted in a settlement of more than $1 billion to the victims and their families.
Across South Florida, surging insurance costs and a dwindling number of insurers writing policies in the state could result in condo owners selling their units at discounts — with vulture investors and developers ready to pounce, experts say.
Rising costs also leading some buyers to back out of contracts.
What other issues are affecting the cost of home ownership?
Do e-bikes & in-home charging stations affect property insurance costs?
The threat of fires caused by lithium-ion batteries is on the rise, and now experts say the problem could only get worse.
Read more at THE REAL DEAL.
As a condo president in South Florida, I find it a daunting task to prepare owners for their costlier future.
We (the Board) decided to jump on the problem early on, rather than waiting for the deadlines.
We are in the process of concrete restoration and have completed our SIRS so that we will have a comprehensive financial plan by the end of October, 2023…next month!
Of course, there are no guarantees regarding inflation or insurance costs, but we have taken charge where we were able.