FL Legislature Passes Insurance Reforms, Changes for Coverage on Older Roofs (condominiums, attorney)

[Sunshine Rules]

The FL House and Senate passed legislative reforms this week regarding the home insurance industry, which has been signed by Gov Desantis into law.



Regarding the Changes: Roofs

The bills would forbid insurers from automatically denying coverage because of a roof’s age if the roof is less than 15 years old. Homeowners with roofs 15 years or older would be allowed to get an inspection before insurers deny them coverage. If an inspection shows that a roof has at least five years of life remaining, insurers can’t refuse to issue a policy only based on the roof’s age, under the proposed legislation.

If a roof is more than 25% damaged but already complies with the state’s 2007 building code, it would only have to be repaired instead of replaced under an exemption to the building code that the proposed legislation creates.


Retrofit Grants

Another provision will allow grants worth up to $10,000 each to retrofit homes so they are less vulnerable to hurricane damage. To qualify, properties would have to have insured values of $500,000 or less, be homesteaded, constructed before 2008 and located in areas where wind speeds from storms can exceed 140 mph (225 kph). Homeowners would get $2 from the state for every $1 they invested in mitigation efforts.


The legislation also creates a $2 billion reinsurance fund for insurance companies and writes new rules regarding coverage denials and attorney fees/lawsuits.



CONDO LEGISLATION REFORMS:

The legislature also addressed some condo related issues in the bills passed, including the following:

Creates a statewide "milestone inspection" requirement for condominiums and cooperative buildings that are three stories or higher 30 years after initial occupancy, and 25 years after initial occupancy for buildings located within three miles of the coast.

Requires inspections every 10 years after a building's initial "phase 1" inspection.

Requires an additional, more intensive inspection, or a "phase 2" inspection, if a building's initial inspection reveals substantial structural deterioration.

Beginning in 2024, condo associations are required to conduct a structural integrity reserve study at least every ten years and prevents needed reserves from being waived.

[gosouth01]

A few years ago when I was looking for a condo on LBK, I was surprised that the reserve funds for most condos were well underfunded. I expect that the new inspection requirements and the non-waivable structural integrity reserve will result in large increases in condo association fees.