Article Courtesy of The Naples
Daily News
By I.M. STACKEL
Published January 4, 2009
NAPLES
— Condominium owners in Florida are required to have a new type of
insurance policy because of a law that took effect Jan. 1.
Homeowners 6 is a personal home insurance
policy that insures contents within a condo that aren’t included in
condo association insurance policies.
The requirement passed in the last session
and was rolled into Florida’s Condominium Act.
“No one is enforcing this at present
other than the association if it chooses to buy or ‘force place’
missing unit owner policies,” said Fort Lauderdale attorney Donna
Berger, executive director of the Community Advocacy Network Community.
“If the unit is rented, it is still the owner’s responsibility to
comply and purchase (a Homeowners 6) policy that is up-to-date with the
new requirements.”
To “force place” a policy means that
the association would buy the policy for the owner who didn’t have one,
and then hand him or her a special assessment for the cost.
Michael Vickers, association manager for
the Pavilion Club Condominiums in North Naples, said that from a
management standpoint, the new law “can be kind of a regulatory
nightmare.”
“I have 156 units here,” Vickers said.
Few people in his association are aware of
the changes in law. Some of the board members probably are.
“But with the price of insurance (these
days) this type of (law) is kind of a tough nut,” Vickers said.
Likewise, he hasn’t a clue as to who is
supposed to enforce the law.
Michelle Hebert is a condo owner in the
Briar Landings at the Enclave in East Naples. The idea of government
telling her she must have insurance is anathema to her.
“I don’t think it’s their business if
we have insurance or not,” Hebert said. “We should be free to make our
own decisions.”
One of the problems is insurers are having
trouble understanding what the law means when they write policies, because
this particular mandate “does not comport with insurance industry
standards,” Berger said.
According to Florida Rep. Julio Robaina,
R-Miami, that language might be removed during the upcoming session.
Robaina has been actively involved in
drafting and pushing through laws that he believes protect condo and
homeowners from associations, which might be viewed as bullying.
“The Legislature will undoubtedly take
away this (Homeowners 6 assessment) ability next year, which is a shame
because in a healthy market it makes sense for associations to buy these
policies and specially assess the owners for same,” Berger said.
According to Jan Bergemann, president of
Cyber Citizens for Justice, a town hall meeting on community associations
and homeowner association reform will be held from 1 to 5 p.m. at Florida
Atlantic University in Boca Raton on Jan. 31, and Robaina will be one of
the panel members. Speakers and panel members also include Mark Benson,
Regulatory Council of Community Association Managers; David Goldenberg,
who will report key findings from Cyber Citizens for Justice’s recent
survey; and attorney Barry Silver on “What To Expect If Battling Condo
Commandos.”
Robaina is also expected to address the
recent rash of foreclosures.
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