When a Florida Senate committee last week approved a bill that would raise the policy limit on homes that can be written by the state-backed Citizens Property Insurance Corp., state Sen. Doug Broxson said the change was needed because of a “hole in the doughnut:” Less-expensive homes can find some property insurance coverage, and wealthy owners of high-end houses can probably afford surplus lines coverage or can self-insure.
Some condominium associations are now vigorously pointing out that there’s another massive hole in the Florida insurance doughnut, one that leaves an estimated 9,000 condo buildings underinsured or unable to find affordable coverage.
The condo market is a big swath of Florida’s economy and a significant source of property tax revenue for counties and cities around the state. But without coverage, some condos with rental units could be forced to drastically raise rates or