A bill is being considered by the state legislature that would make windstorm insurance coverage more affordable for condominium owners in Florida.
An insurance expert thinks the bill would be good for condo owners if it passes.
It would bring down the premium payment and offer actual cash value for the roofs of condo buildings.
So instead of the current system, which requires owners to pay premiums based on the cost of replacing a roof, this program would have the option of getting a policy based on the actual cash value of the roof.
It would take into account the roof’s age and thus its depreciated value.
Eligibility requires a majority vote by Condo Association members and roof inspections every two years.
It’s also only an option for condo buildings insured by Citizens Property Insurance.
Insurance expert Mark Friedlander says he thinks this will be good for owners but they should also be aware of the risks.
“With an actual cash value schedule for roof replacement, you’re not going to get the full value back. So depending on the age and condition of your roof, it could be much less than what it’ll cost for the roof to be replaced from a windstorm,” Friedlander said.
The bill was filed by Senator Ana Maria Rodriguez of Miami.
If it is approved by the legislature and signed off by the governor, it would become law for five years, starting in July 2024.