Florida Waits on Condo Rates

Florida condominium buildings will see no rate increase for now. Citizens Property Insurance Corp. has been looking to shed some of its current 1.5 million policyholders. One proposal called for capping the available coverage for condominium buildings that rent 25 percent of their units at $1 million. Citizens’ staff said the cap could have a significant impact on the insurer’s bottom line. Citizens officials, however, fear that the cap could spell trouble down the road. “I sense this is one of those kinds of issues where we could confront a backlash at all levels and we really have to thoroughly look at it,” said Citizens Board Chair Carlos Lacasa.

Board member Carol Everhart, vice president of BB&T bank, warned that premiums would rise for those condos by upward of 45 percent.

But board member John Rollins said something must be done. “Condominium complexes should not enjoy a major subsidy in rate level,” he said.

The board voted to table the issue until Feb. 4.