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Windstorm Insurance For Condos: A New Option For Affordable Coverage In Florida

Jan 15, 2024

Condos are popular in Florida and throughout most of the country. However, condo owners often face additional difficulties in finding insurance, particularly when it comes to affordable premiums for windstorm insurance in Florida.

Del Toro Insurance is a leading insurance firm in Florida dedicated to helping condo owners throughout Hialeah Gardens, FL, Margate, FL, Homestead, FL, Palmetto Bay, Cutler Bay, Hialeah Gardens, FL, North Miami Beach, Coral Gables, Hialeah, FL, Naples, FL, and Miami, FL to find affordable insurance. Our agents are available to help you find condo and home insurance quotes that provide the protection you need and are within your budget.

One of the reasons so many of our customers are having difficulty in finding affordable windstorm and hurricane insurance for condos in Florida is the devastation of several years of bad storms in the state. This started in 2004 and 2005 with Hurricanes Ivan and Katrina, followed by Tropical Storm Isaac and Hurricanes Irma, Sally, and Ian, all with devastating losses of lives and property.

These large storms have impacted every home insurance company in Florida. Many have stopped writing homeowners policies, while smaller insurance companies have closed down or are insolvent.

With a decreased number of insurance providers combined with higher risks for storms as climate change continues to be felt around the world, condo owners throughout the state are feeling the brunt of higher insurance premiums.

A New Bill

A new bill in the legislature is designed to help make windstorm insurance coverage something that is more affordable for those who want to add it to their basic condo insurance.

The bill proposes that instead of having to carry insurance for the replacement value of the roof, the new insurance would offer the option of the actual cash value. In other words, the insurance company would not have to face the same level of claims as they would not need to pay to replace the roof. Instead, the insurance would pay a claim for the value of the roof based on its current condition and age.

In turn, this would help condo owners by potentially reducing the premiums of wind insurance if they opted for actual cash value instead of replacement cost coverage. There will still be a need to carry flood insurance for a home in Florida, as windstorm policies do not cover flooding.

This bill needs to be approved by the various condo associations throughout the state. In addition, the associations will need to agree to assess the condition of the roof for insurance claim purposes, and condo roofs will need to be inspected every two years.

Currently, this bill only applies to condos insured by Citizens Property Insurance Company, which means it will not apply to all condo owners. In addition, the bill, if approved, will go into effect in July of 2024 and be in place for five years.

Possible Considerations

While Actual Cash Value or ACV will decrease premiums, it also means that condo owners will not get the full cost of replacing a roof when they make a claim. The older the roof, the less is paid out in claims, potentially leaving the condo owner with a significant cost for roofing.

Talking with an insurance agent from Del Toro Insurance is the best way to consider your options when it comes to all types of condo insurance and coverage. Drop in to speak with us in person or call us at 305-335-8676 for more information and condo and home insurance quotes in Florida.


What is actual cash value (ACV) coverage?

Actual cash value coverage pays out to repair or replace the damage based on the current condition of the item. In other words, it is not the current replacement cost, but the cost of the item less depreciation.

Do I qualify for the new program?

The new program, if approved, is only available to those condo owners in buildings insured by Citizens.

What are the risks of ACV coverage?

The older the roof, the less the condo owner will receive in a claim. This potentially leaves the condo owner with a significant out-of-pocket expense to replace the roof after the storm.

When will the new program be available?

The bill must be approved by the legislature and the Governor and then will go into place for five years starting in July of 2024.

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