Condo insurance law causing indigestion

By
Real Estate Agent with Keller Williams Realty

Effective January 1, 2009, condominium unit owners are required by state law to carry insurance, and condo associations have the right to purchase it bill the unit owners. This has hundreds of calls flooding in to state representatives’ offices from angry condo owners. Insurance can cost from $1,000 to $5,000 a year depending on the unit’s value.

Lenders require insurance — and have the right to purchase it on the owners behalf and bill them — but owners whose units have no mortgage have always been able to decide for themselves whether to carry insurance. The new law changed all that.

Condo associations carry insurance to rebuild common property elements, which includes the building itself, pools, clubhouses, etc. But that insurance will NOT repair the individual units — and that means from the concrete structure walls in is all the repsonsibility of the homeowner. The law has some problems, though, and it’s going to take another act of the legislature to fix them. Read the full story right here.

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Rainmaker
891,500
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Cynthia and Preston,

As a popular tourist destination where condo sales have historically been liquid, we're also seeing some back lash on this new law.

Thanks for providing visitors and customers the link to the information.

Best of luck

Jan 28, 2009 11:45 PM #1
Rainer
55,585
Sean Dreznin
NAI Tampa Bay - Sarasota, FL
Commercial Investment Real Estate Agent

C & P,

Ridiculous!

Thanks 4 posting.

Sean

Jan 29, 2009 12:53 AM #2
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Rainer
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Cynthia Calisch and Preston Larus

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