Florida lawmakers have passed a new condo bill aimed at easing some of the financial burdens placed on condominium associations and unit owners, while also introducing new provisions that raise questions in the insurance sector.
Background: Post-Surfside Regulatory Landscape
Following the tragic collapse of the Surfside condominium in 2021, Florida enacted stringent regulations in 2022. These included mandatory structural inspections, robust reserve funding, and limitations on unit owners’ ability to delay necessary repairs. These measures were implemented to improve building safety and prevent similar disasters.
However, as implementation of the new rules began, many condo owners and associations expressed concerns about affordability. Rising insurance premiums and limited carrier availability added to the pressure.
Overview of HB 913
House Bill 913, approved by the Florida Legislature in early May 2025, introduces changes that address some of the financial challenges faced by condo associations. If signed into law by Governor Ron DeSantis, key elements of the bill will include:
- Reserve funding flexibility: Associations may fund reserves through loans or lines of credit.
- Deferred reserve payments: Boards can pause contributions to reserves in favor of addressing urgent repairs.
- Extended deadlines: Associations now have more time to complete required structural integrity studies.
- Exemptions for smaller buildings: Certain buildings below a threshold will be exempt from conducting structural analyses.
These provisions are intended to balance building safety requirements with the financial realities facing many unit owners.
Insurance Provisions and Industry Reactions
Several amendments to insurance requirements in the bill have generated debate within the insurance community. Notably:
Appraisal Requirement Language Change
The bill previously mandated that condo associations determine replacement cost through an independent appraisal. The final version now states that replacement cost may be determined by appraisal or an update to a previous appraisal.
Interpretation of this language varies:
- Some industry professionals express concern that removing the mandatory appraisal requirement could lead to inconsistent valuation methods and potential underinsurance.
- Others maintain that carriers will still require appraisals, as a standard practice, regardless of legislative changes.
Loss Limit Based on Windstorm Models
Another provision allows insurance requirements to be met by insuring the building to cover the probable maximum loss from a 250-year windstorm event, based on accepted hurricane loss models.
This loss-limit approach is seen by some as a way to reduce premiums. However, it has also raised questions about whether it could lead to underinsurance if buildings are not insured to their full replacement value.
Meeting Attendance and Governance Considerations
The bill also affects condominium governance procedures. While a proposed restriction on video conferencing was removed, the final legislation requires that a quorum of board members be physically present at meetings, even if the meeting itself is conducted via video. This could present challenges for boards with part-time or out-of-state members, particularly in emergency situations.
Future Clarifications and Implementation
Stakeholders anticipate further guidance from the Florida Office of Insurance Regulation regarding acceptable valuation methods and limits on loss-based policies. Additionally, legislators may revisit the bill to clarify certain provisions during upcoming sessions.
HB 913 represents Florida’s ongoing efforts to fine-tune condominium governance and insurance requirements in the wake of the Surfside tragedy. While the bill offers some financial relief to associations and unit owners, its long-term impact, particularly regarding property insurance, will depend on regulatory interpretation and market response.
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