Assessments needed to cover increased insurance premiums

Support local journalism by subscribing here: Special Offers – USATodayNetwork.

Dear Poliakoffs,

I recently received a notice from my condo association that there is a $500,000 shortfall in the budget related to our insurance premiums. Starting next month, all unit owners will be charged a certain percentage to cover this shortfall. This does not seem quite right to me, as we have all paid our association fees monthly as expected; how can they now come back to charge us more than they charged us in the beginning? Am I wrong about this? Seems like a scam to me.

Signed, RB

Dear RB,

Due to a number of market factors, including the Surfside tragedy (the collapse of Champlain Towers South), many insurers have left the Florida market and the cost of insurance has increased dramatically. Many of our clients have reported premium increases of hundreds of thousands of dollars. So if your insurance renews in the summer, what you’ve described is not at all surprising (I’ve heard several reports of similar increases). The association is legally required to carry insurance and they have to pay for this premium increase somehow; the only solution is to increase your ratings. This can be achieved in one of two ways. Either the board can amend the annual budget and collect higher assessments for the rest of the year (which is what appears to be happening in your case), or the board can pass a special assessment to collect enough funds to cover the deficit

Leave a Comment

Your email address will not be published.