When we first introduced you to Thereza Teixeira, she talked about the impact of an $81,000 special assessment that was imposed by her condo HOA last year.
“It’s a huge hit,” she told us.
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A financial hit she’ll be dealing with for 20 years. But that’s not the only reason why what she pays for her condo has soared since she bought her unit in Aventura 14 years ago.
“The regular maintenance, which started when I lived here at $700 or $600, now it’s $980,” she said.
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A recent RedFin analysis of MLS data in 43 of the most populous cities found median monthly condo HOA dues are up more than 15% over the year in Tampa, Orlando and Fort Lauderdale compared to a 6% increase overall.
In Miami, dues jumped 5.7% over the year, the analysis found. RedFin said that was partly because the median monthly HOA due there was $835, which was higher than any other metro area they analyzed. The cost of insurance for a condo building is typically included in its monthly dues.
“We’ve been seeing a trend the last few years of average increases in cost for a master condo association policy of 100% to 500% year over year,” said Mark Friedlander, spokesperson for the Insurance Information Institute.
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But Friedlander said there was reason to be hopeful, as the market for policies that cover condo buildings expands.
“Citizens is offering more coverage for master condo associations than before,” he said. “One of the new entrants into the Florida market is a specialized insurer in master associations, so there are some new companies coming into the market or expanding their presence to offer master condo coverage.”
“That’s a good thing and that’s really what we need,” he added.
This week, Miami-Dade Mayor Daniella Levine Cava urged the state legislature to make condo reform a priority this upcoming session. On Monday, the mayor sent a letter to the leaders in the Florida Senate and House that said, in part, “Residents across our state are feeling the pressure, and we are deeply concerned that these challenges will intensify the affordability crisis…”
Last week, the Florida Senate leader ruled out a special session. After the Surfside tragedy, state lawmakers passed a series of reforms to enhance condo safety. The mayor said the legislation was well-intentioned but many owners can’t keep up with the costs.
Thereza said she has had to make adjustments to her budget to make up for the rising costs.
“We just have to make it work,” she said. “It’s worth it for the quality of the building. It’s a great location.”
Friedlander said you want to make sure you have enough coverage, in case there’s a major loss. He suggested having your insurance agent take a look at your master condo association’s insurance policy, to see if there are any gaps you may need to fill with your own individual property policy.
