A new Florida House bill is making waves as it seeks to prevent Citizens Property Insurance Corp. from covering condominium properties that fail to meet inspection deadlines. The bill, known as House Bill 913, was introduced by state Representative Vicki Lopez from Miami and passed its first committee review this week.
The legislation aims to ensure that condo associations complete essential safety inspections and structural integrity studies before they can obtain or renew insurance policies with Citizens, which is the state’s largest property insurer. This move comes in the wake of the tragic Surfside condominium collapse in 2021, which claimed 98 lives and prompted lawmakers to require inspections for buildings taller than three stories by the end of 2024. However, reports indicate that only about a third of eligible structures in Florida have complied with these requirements.
Lopez argues that the bill is necessary to enforce safety standards in condo buildings. She believes that without a firm approach, many associations may not take the required actions to ensure the safety of their residents. Citizens is often the insurer of choice for many condo owners, as other companies have been tightening coverage options and raising premiums.
As of 2024, Citizens had over 100,000 policies in place for condominiums, including various types of coverage. Lopez’s bill would not only restrict insurance coverage for non-compliant condos but also provide some relief mechanisms. If passed, it would allow condo boards to obtain loans and impose new fees for maintenance without needing prior approval from all members.
However, not everyone supports this measure. Some lawmakers and insurance brokers have expressed concerns that the bill could further burden struggling condo associations facing high repair costs and limited insurance choices. A similar Senate bill, sponsored by Senator Jennifer Bradley, does not include the prohibition on Citizens and aims to provide alternative support for associations.
Critics, including insurance experts, argue that Citizens already has strict guidelines that ensure safety and maintenance standards. They believe the proposed restrictions in HB 913 may be unnecessary and could complicate matters for condo owners.
Both Lopez’s and Bradley’s proposals also include provisions to allow condo boards to seek lines of credit to meet funding needs for repairs. Additionally, Lopez’s bill would update how insurance coverage is calculated, basing it on the property’s replacement value, which could lead to higher insurance costs in some cases.
The Florida legislative session began on March 4 and will run until May 2, with further discussions on these bills expected in the coming weeks. The outcome of these proposals could significantly impact condominium owners and associations across the state.