Enhancing Condo Law and Property Insurance: A Step Towards Transparency and Stability
Last Monday night, City Hall hosted a pivotal meeting addressing crucial changes to condo law and property insurance. Senator Jennifer Bradley, who sponsored the original SB 4D right after the Surfside tragedy, and Representative Vicki Lopez took the stage as speakers. The meeting began with an emphasis on common interests and rights of condo owners, particularly the essence of ownership.
Improving Transparency with SB 154
One of the primary concerns highlighted during the meeting was the lack of transparency faced by condo owners. SB 154, aimed at fostering transparency, was discussed to ensure that everyone involved operates based on the same set of facts. The County is taking the lead in setting the bar, while the City is entrusted with its enforcement. The Deputy Director of the Miami Dade Co. Recertification Department shared valuable insights into the mistakes already being identified in the process.
The Issue of Engineering Reports and SIRS
Senator Bradley and Representative Lopez shed light on the challenges faced by condo owners concerning engineering reports for the Structural and Electrical Safety Inspection Recertification (SIRS). With average costs ranging from $25,000 to $50,000, some inspectors fear personal liability for minor issues in the inspection. The urgency of acting promptly was emphasized, as noncompliance with the law may lead to assessments in the 2025 budget. They urged condo owners to be assertive with their boards, ensuring the SIRS process is not delayed.
Access to Records and Legal Requirements
The importance of condo owners having access to records was also highlighted. The speakers stressed the need for minimum information on websites for all condos with more than 150 units. By ensuring easy access to crucial information, owners can make informed decisions about their investments.
True Reserves and Insurance Considerations
The meeting also delved into the significance of true reserves and their relation to obtaining insurance and loans. This reserve pool differs from the one required for the "subsection G" list in the SIRS. To give buyers ample time to assess a building's financial health, a 15-day period for nullifying sales contracts was introduced.
Pooling SIRS Reserves
A noteworthy change discussed during the meeting allowed SIRS reserves to be pooled under a structural/separated account for those 14 items. This decision could positively impact condo owners, providing them with greater financial flexibility.
Balancing Property Insurance
The discussion on insurance centered around finding a balance while recognizing the need for a relief valve. Banks and insurance companies have begun scrutinizing the financial management of buildings more closely than ever. Senator Bradley revealed that the rates for insurance skyrocketed due to the global reinsurance market's instability, stemming from factors like the Ukraine conflict. As a response, a local reinsurance pool was established to mitigate the situation.
The Townhall Meeting addressed critical changes to condo law and property insurance. With a focus on transparency, reserve requirements, and property insurance balancing, the gathering was a stepping stone towards ensuring a stable and secure future for condo owners.
