Insurance Crisis in South Florida Condos
Over the last few months, we have watched as South Florida Condos received their insurance quotes for the coming year. In addition to many condos receiving massive increases, some older condos such as many Palm Aire Condo buildings were not being offered the same coverage, they had received prior. It is no secret that South Florida Single family homeowners have been seeing massive increases as homes were sold and new homeowners went to get insurance, but the numbers that faced condo buildings were just so much more alarming. Many buildings that had deferred maintenance and updates simply are now being forced to pay up.
Looking Back is Not a Strategy
The monthly cost of owning a condo is rising for three obvious reasons. The cost of insurance has gone through the roof. Inflation has hit the cost of everything that buildings need to operate. Florida has passed a law requiring condos to have their reserves in place by the end of next year. These three things explain the entire story effecting South Florida Condos today. Unfortunately, some property managers have seen as part of the explanation a need to point fingers at prior boards and management companies. Simply this is not a win under any circumstance. When given a chance to vote on funding reserves over the years, many condo owners have simply voted to kick the can down the road. The State of Florida after a horrible accident has placed stringent requirements on reserve accounts. Though not the subject of this article, giving buildings one year to make up for possibly 50 years of under funding is a bit ridiculous and may need to be addressed.
Not all Fort Lauderdale Condo Buildings are Being Hit the Same
Throughout South Florida there are buildings that have been beautifully maintained and though not immune to rising costs, they are not facing the same issue. Recently in Palm Aire, one of the largest condo communities in Broward County in Pompano Beach Florida many parts of the community are facing the three-prong crisis, but some parts of Palm Aire are not. Some condos have funded reserves and stayed on top of maintenance throughout the years. I currently am renovating a Palm Aire Three Bedroom King in Condo 12 – Cypress Grove of Palm Aire Country Club and am selling the Two Bedroom Palm Aire I currently live in at the same building. With a new roof on the building and funded reserves the monthly increase for 2024 was less the five dollars. In Condo 12 of Palm Aire the Board of Directors and Campbell Management certainly deserve credit for making this happen. If you are in the market for a Palm Aire Condominium or any condo in the South Florida market now is simply the time to work with a Realtor who understands the condo market. Buyers need to know exactly what questions to ask so that they are fully aware of where their condo’s budget stands, the history of assessments, the goal is to prevent their South Florida Dream Condo from turning into a nightmare.
