Insurers Send Demand Letters to Florida CondosJuly 7, 2021
Following the partial collapse of Champlain Towers South in Surfside, Florida, insurance companies sent letters to owners of condominiums 40 years and older across South Florida, asking for proof that their buildings have passed all inspections or they will lose their coverage.
Experts say insurers already consider older condos on the coast, with their hurricane exposure, their common ownership structure, and reputations for delaying maintenance, as high risks. Recent action letters could have a ripple effect across the state if they result in policies being dropped and a tightening of the insurance market.
The Florida Office of Insurance Regulation did not have a role in the letters released by the insurers, said Alexis Bakofsky, director of communications. “OIR is monitoring the Surfside disaster closely and stands ready to assist with any issues or questions,” she said. If a consumer has a question about a letter received from an insurer, they can contact the Department of Financial Services.