Even before residents can finish grappling with the aftermath of Hurricanes Ian and Nicole, the Grand Coquina Condo Association in Daytona Beach Shores has received yet another devastating hit. This time, it’s due to rising property insurance rates.
Association treasurer Jeff Sussman noted the extensive damage to the property’s drainage infrastructure and seawall. They have to reconstruct both and develop a complex drainage system to prevent future incidents.
The progress has been commendable, as noted by Sussman. He is hopeful for a turnaround by Memorial Day. However, this will be dependent on the decision of the Florida Department of Environmental Protection.
The damages to the building and seawall amounted to $5 million. However, insurance coverage compensated less than 10% of the total cost. The cost-intensive reconstruction projects have come at a time of skyrocketing insurance rates.
The treasurer reported a 209% increase in their insurance premium after the two storms. The rates leaped from $270,000 in 2022 to $640,000. However, this situation is not exclusive to the Grand Coquina Condo Association. Condominium associations throughout the Florida housing market have seen a sharp increase in property insurance rates.
To manage the hike, Sussman and the association have proposed an additional assessment of $2,331 per unit for the year. This is forcing many out of condo ownership. The majority of those affected are the elderly with fixed incomes.
This year, the count of units up for sale at the Grand Coquina complex has reached 14. More are expected to follow if the situation remains unchanged.
Unfortunately, there appears to be no respite in sight. The association’s insurance agent has predicted an additional 40% increase in property insurance rates in 2024. This will take their insurance bill to $900,000 per year, a 450% increase from 2022.
In response to the mounting financial pressures, the association is exploring alternative insurance options. The emergence of new insurance companies offers a glimmer of hope, as the competition might result in more feasible rates.
Sussman said the association’s insurance broker is already in touch with one of the new companies. They’re waiting for a quote that will determine their 2024 budget and assessment strategies.
Sussman also expressed his association’s commitment to the fight for a fair settlement since their community depends on it. They have taken steps to this effect by filing claims on their flood and wind policies, and they are hopeful of a settlement soon. The settlement will cushion against the skyrocketing insurance rates and provide some relief to Grand Coquina Condo residents.
