\n<\/div><\/div>\n<\/div>\n<\/div>\n

By Kimberly Miller<\/div><\/div>\n

The tragedy rattled a Fla. insurance industry that was already struggling. One Palm Beach condo complex expected a 25% increase \u2013 but coverage rose by 82%.<\/span><\/span><\/p>\n<\/div>\n

WEST PALM BEACH, Fla. \u2013 The specter of Champlain Towers South came in an email alert this month for residents of a West Palm Beach waterside condominium. Insurance on the 12-story building across from the Lake Worth Lagoon increased 82%, requiring a special meeting to hike the budget and jack up dues. It was a blow for the association, which had planned for just a 25% rate jump on top of a 25% increase the previous year.<\/span><\/span><\/p>\n

\u201cEveryone is shocked,\u201d said Mary McSwain, who bought her one-bedroom unit in the 51-year-old Portofino South Condominium in January. \u201cI\u2019m just getting near retirement and I thought this was going to be my dream place but I\u2019m getting priced out.\u201d<\/span><\/span><\/p>\n

McSwain, 67, said her dues are going from $914 a month to $1,347 \u2013 a monetary burden that means she will work more and longer instead of scaling back her job as an attorney.<\/span><\/span><\/p>\n

While it\u2019s impossible to tease out exactly how much of the insurance increase was a reaction to the collapse in Surfside, Portofino property manager Robert Gardner said \u201cof course\u201d some of it is a consequence of the tragedy that killed 98 people in the early morning darkness of June 24, 2021.<\/span><\/span><\/p>\n

Insurers in general statewide were already on the ropes before the tower fell, the collapse was a knock-down punch.<\/span><\/span><\/p>\n

Gardner had just three companies willing to give him a quote after the association got notices its insurance would not be renewed under the same terms. The reasons for denials ran the gamut \u2013 the building\u2019s too old, it has cast iron pipes, there\u2019s no sprinkler system, the roof is 21 years old.<\/span><\/span><\/p>\n

\u201cIt goes on and on,\u201d Gardner said. \u201cIt\u2019s just nuts right now.\u201d<\/span><\/span><\/p>\n

And it\u2019s likely to get more expensive for owners under the new condo law approved during a special legislative session. The new law took effect when Gov. Ron DeSantis signed it May 26, but most safety provisions do not kick in until late 2024. It requires maintenance accountability measures on older condos three stories or higher, such as engineering inspections and dedicated reserves to pay for fixes.<\/span><\/span><\/p>\n

For the 140-unit Portofino South, the insurance pinch is first.<\/span><\/span><\/p>\n

And it comes as the Portofino owners are looking at another hit, too. Unrelated to the Champlain Towers collapse, Portofino also must by law install a sprinkler system by Jan. 1, 2024 \u2013 an expense that will cost at least $7 million.<\/span><\/span><\/p>\n

The new, post-Champlain law requires a structural integrity reserve study to determine how much money is needed for future major repairs to be completed by Dec. 31, 2024. Following completion of the report, condo boards must reserve funds for projects identified in the report and cannot use those reserves for other purposes.<\/span><\/span><\/p>\n

West Palm Beach attorney Michael Gelfand, who served on the Condominium Law and Policy Life Safety Advisory Task Force set up after the Surfside collapse, said there is a concern people will not be able to afford what is coming.<\/span><\/span><\/p>\n

Years of lax state oversight, weak regulations, and volunteer condo boards reluctant to levy heavy dues on their friends and neighbors have allowed buildings to deteriorate, he said. Champlain Towers South had about $706,000 in its reserves as of January 2021, according to a review the year before by the company Association Reserves. But it needed more than $10 million for projected repairs.<\/span><\/span><\/p>\n

\u201cAfter decades, the real cost of housing will be recognized for those who actually own and occupy condominiums,\u201d Gelfand said. \u201cIf people can\u2019t afford it, they will have to move. That is not an easy thing to say, but that is what it comes down to.\u201d<\/span><\/span><\/p>\n

The end of some condominiums?<\/span><\/span><\/h3>\n
He suspects some condominiums will vote to sell out to developers in lieu of paying millions of dollars in assessments. The process, called condominium termination, isn\u2019t new but may attract developers with plans to demolish buildings and replace them with new construction. With the real estate market still humming in South Florida, beachfront properties are in high demand.<\/span><\/span><\/p>\n
An April Wall Street Journal article notes that a handful of Miami-area condos have already sold to developers.<\/span><\/span><\/p>\n
\u201cWe are going to see the vultures come in, and in some situations, they will make an offer that can\u2019t be refused,\u201d Gelfand said.<\/span><\/span><\/p>\n
With the insurance market in shambles, some condominiums have turned to the state-run Citizens Property Insurance Corp. for coverage. In Palm Beach County, the number of condominium associations covered by Citizens in buildings 40 years and older increased 64% (from 402 to 662) between April 2021 and May 2022. On buildings younger than 40 years, policies increased 70% (from 144 to 244) during the same time period.<\/span><\/span><\/p>\n
Portofino South was able to find private insurance this year, and Gardner hopes the insurance legislation passed during the special session will help next year. \u201cBut I have no idea what\u2019s going to happen,\u201d he said.<\/span><\/span><\/p>\n
Some Portofino residents are paying more for their individual unit insurance as well as the association increase. Vicky Ross, 79, was canceled from her private carrier earlier this month and had to enroll with Citizens, which included a $500 rate hike. In addition, her association dues will go up $433 a month.<\/span><\/span><\/p>\n
Throughout Palm Beach County, the number of personal residential condominium policies written by Citizens increased 61% in buildings 40 years old and older between April 2021 and May 2022. In buildings younger than 40, it went up 43%.<\/span><\/span><\/p>\n
\u201cAll I know is at the end of the month, I won\u2019t have the little surplus I had before,\u201d Ross said.<\/span><\/span><\/p>\n
Portofino South condo owner Margaret Daley, 82, has been a full-time resident of the building for eight years but has been visiting it since it opened in 1971 when her parents bought a unit there. A former association vice president, Daley said the building has been well maintained, was just painted and recently completed a restoration project.<\/span><\/span><\/p>\n
She\u2019s had no concerns about its safety, even after the Surfside collapse. While she doesn\u2019t like the higher costs, she\u2019s not overly concerned.<\/span><\/span><\/p>\n
Still, Portofino association President Gregory D\u2019elia is nervous about how owners on fixed incomes will pay for the increases, and he\u2019s angry with lawmakers for letting boards get away with putting off repairs for so many years. He\u2019d like to install new elevators, but instead he has to budget for the sprinkler system, which was originally required to be completed by the end of 2019 but had its deadline extended to the end of next year.<\/span><\/span><\/p>\n
\u201cMy frustration is the Legislature turned a blind eye to this,\u201d he said. \u201cWhere were you all this time so that Champlain didn\u2019t happen?\u201d<\/span><\/span><\/p>\n
The unknown is what scares others, including McSwain, who said for now she\u2019ll dip into her savings to pay the extra costs.<\/span><\/span><\/p>\n
\u201cI just don\u2019t know how many more increases or special assessments there can be,\u201d she said. \u201cA couple of people in our building are on fixed incomes and they said they just can\u2019t absorb this.\u201d<\/span><\/span><\/p>\n
\u00a9 Copyright 2022 Palm Beach Newspapers, Inc. Kimberly Miller is a veteran journalist for The Palm Beach Post, part of the USA Today Network of Florida.<\/span><\/span><\/p>\n<\/div><\/div>\n
Go to Source<\/a>
\nAuthor: kerrys<\/p>\n","protected":false},"excerpt":{"rendered":"
By Kimberly Miller The tragedy rattled a Fla. insurance industry that was already struggling. One Palm Beach condo complex expected a 25% increase \u2013 but coverage rose by 82%. WEST PALM BEACH, Fla. \u2013 The specter of Champlain Towers South came in an email alert this month for residents of a West Palm Beach waterside condominium. Insurance on the 12-story building across from the Lake Worth Lagoon increased 82%, requiring a special meeting to hike the budget and jack up dues. It was a blow for the association, which had planned for just a 25% rate jump on top of a 25% increase the previous year. \u201cEveryone is shocked,\u201d said Mary McSwain, who bought her one-bedroom unit in the 51-year-old Portofino South Condominium in January. \u201cI\u2019m just getting near retirement and I thought this was going to be my dream place but I\u2019m getting priced out.\u201d McSwain, 67, said her dues are going from $914 a month to $1,347 \u2013 a monetary burden that means she will work more and longer instead of scaling back her job as an attorney. While it\u2019s impossible to tease out exactly how much of the insurance increase was a reaction to the collapse in Surfside, Portofino property manager Robert Gardner said \u201cof course\u201d some of it is a consequence of the tragedy that killed 98 people in the early morning darkness of June 24, 2021. Insurers in general statewide were already on the ropes before the tower fell, the collapse was a knock-down punch. Gardner had just three companies willing to give him a quote after the association got notices its insurance would not be renewed under the same terms. The reasons for denials ran the gamut \u2013 the building\u2019s too old, it has cast iron pipes, there\u2019s no sprinkler system, the roof is 21 years old. \u201cIt goes on and on,\u201d Gardner said. \u201cIt\u2019s just nuts right now.\u201d And it\u2019s likely to get more expensive for owners under the new condo law approved during a special legislative session. The new law took effect when Gov. Ron DeSantis signed it May 26, but most safety provisions do not kick in until late 2024. It requires maintenance accountability measures on older condos three stories or higher, such as engineering inspections and dedicated reserves to pay for fixes. For the 140-unit Portofino South, the insurance pinch is first. And it comes as the Portofino owners are looking at another hit, too. Unrelated to the Champlain Towers collapse, Portofino also must by law install a sprinkler system by Jan. 1, 2024 \u2013 an expense that will cost at least $7 million. The new, post-Champlain law requires a structural integrity reserve study to determine how much money is needed for future major repairs to be completed by Dec. 31, 2024. Following completion of the report, condo boards must reserve funds for projects identified in the report and cannot use those reserves for other purposes. West Palm Beach attorney Michael Gelfand, who served on the Condominium Law and Policy Life Safety Advisory Task Force set up after the Surfside collapse, said there is a concern people will not be able to afford what is coming. Years of lax state oversight, weak regulations, and volunteer condo boards reluctant to levy heavy dues on their friends and neighbors have allowed buildings to deteriorate, he said. Champlain Towers South had about $706,000 in its reserves as of January 2021, according to a review the year before by the company Association Reserves. But it needed more than $10 million for projected repairs. \u201cAfter decades, the real cost of housing will be recognized for those who actually own and occupy condominiums,\u201d Gelfand said. \u201cIf people can\u2019t afford it, they will have to move. That is not an easy thing to say, but that is what it comes down to.\u201d The end of some condominiums? He suspects some condominiums will vote to sell out to developers in lieu of paying millions of dollars in assessments. The process, called condominium termination, isn\u2019t new but may attract developers with plans to demolish buildings and replace them with new construction. With the real estate market still humming in South Florida, beachfront properties are in high demand. An April Wall Street Journal article notes that a handful of Miami-area condos have already sold to developers. \u201cWe are going to see the vultures come in, and in some situations, they will make an offer that can\u2019t be refused,\u201d Gelfand said. With the insurance market in shambles, some condominiums have turned to the state-run Citizens Property Insurance Corp. for coverage. In Palm Beach County, the number of condominium associations covered by Citizens in buildings 40 years and older increased 64% (from 402 to 662) between April 2021 and May 2022. On buildings younger than 40 years, policies increased 70% (from 144 to 244) during the same time period. Portofino South was able to find private insurance this year, and Gardner hopes the insurance legislation passed during the special session will help next year. \u201cBut I have no idea what\u2019s going to happen,\u201d he said. Some Portofino residents are paying more for their individual unit insurance as well as the association increase. Vicky Ross, 79, was canceled from her private carrier earlier this month and had to enroll with Citizens, which included a $500 rate hike. In addition, her association dues will go up $433 a month. Throughout Palm Beach County, the number of personal residential condominium policies written by Citizens increased 61% in buildings 40 years old and older between April 2021 and May 2022. In buildings younger than 40, it went up 43%. \u201cAll I know is at the end of the month, I won\u2019t have the little surplus I had before,\u201d Ross said. Portofino South condo owner Margaret Daley, 82, has been a full-time resident of the building for eight years but has been visiting it since it opened in 1971 when her parents bought a unit there. A former association vice president, Daley said the building has been<\/p>\n","protected":false},"author":4,"featured_media":6751,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6750"}],"collection":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/comments?post=6750"}],"version-history":[{"count":0,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/posts\/6750\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media\/6751"}],"wp:attachment":[{"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/media?parent=6750"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/categories?post=6750"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/nwfl4sale.com\/wp-json\/wp\/v2\/tags?post=6750"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}