The
standoff over whether to purchase windstorm insurance brewed for several
years at Greenbriar Condominiums in Boca Raton
.
Board member Walker Crewson argued that Florida law required the
association to have it. But his fellow directors declined to purchase it
because the association had invested heavily in storm-proofing the
property and had windstorm coverage for the clubhouse.
They said Greenbriar's governing documents did not require windstorm
insurance unless three-quarters of the 24 units voted in favor of it,
and if Crewson was right, each owner would pay a lot more.
"It was hard. I didn't want to make enemies of my neighbors,"
said Crewson. On the other hand, if the condo did not have windstorm
insurance, it could face up to $5,000 per violation. If the Florida
Department of Business and Professional Regulation needed to enforce the
order in court, there also could be court costs. Plus, in the end, the
agency would require the association to obtain the insurance.
After
years of debate, Crewson and another unit owner contacted the state.
Here is what they learned:
1. Florida law requires all condo associations to buy windstorm
insurance. And state law supersedes conflicting condo law.
Crewson's fellow board members believed the association had met the
law's intent by having other forms of insurance — flood, liability,
etc. — and by having spent more than $200,000 on storm-proofing the
building and units, including installing impact glass, wind-proof garage
doors and strapping down rooftop air-conditioner equipment. But the DBPR,
which oversees condo associations, let Greenbriar know it was indeed in
violation.
Greenbriar, which lies on the west side of State Road A1A, now is in
compliance, say directors.
2. There are no exceptions to the windstorm insurance requirement.
But associations may obtain insurance through a self-insurance fund or
through a group policy as approved by the Office of Insurance
Regulation, said a DBPR spokesperson.
"But the law is not fair," said Greenbriar vice president
Arnold Cohen. "If a condo can prove it has storm-proofed its
property, it should be able to decide for itself whether windstorm is
needed."
Cohen says each unit owner was assessed approximately $8,300 to
storm-proof the buildings and now must pay an additional $1,600 to cover
higher insurance bills.
"This law is putting a lot of pressure on people who don't have
that kind of money to shell out," said Dick Verro, president of
Greenbriar.
Cohen and Verro want lawmakers to consider an opt-out provision for
condos built or retrofitted to withstand a major hurricane.
It may be a tough sell.
"I don't think there is much appetite to change the law. Mitigation
is no guarantee that you won't be damaged. And let's face it, if we get
a Category 4 or 5 hurricane, there will be some damage," said State
Rep. Ellyn Bogdanoff, R-Fort Lauderdale
, whose
office was called by Cohen for possible help.
Bogdanoff says the purpose of the law is to make sure unit owners are
able to move back home as soon as possible after a destructive storm.
"We also enacted legislation in 2007 to reduce windstorm insurance
costs," she said.
3. Florida law requires all condo unit owners to insure their
interiors.
Bogdanoff said that is likely to change in the 2009 legislative session
because lawmakers' intent simply was to delineate what the association
was responsible for. And that includes the exterior, up to the drywall.
"I have submitted the language to reverse the requirement for unit
owners to purchase individual policies," she said.
However, Rep. Julio Robaina, R-Miami, who pushed for the mandate to be
removed, warned "If you go bare like that, you should know that you
will be responsible for everything inside your unit."