Introduction
Florida’s condominium insurance market may be heading for a dramatic transformation in the 2025 legislative session. With low compliance rates for mandated milestone inspections and the introduction of House Bill 913 (HB 913), condominium associations that fail to meet state inspection requirements could face serious consequences—including the loss of crucial insurance coverage.
As lawmakers push for greater structural safety following the tragic Surfside collapse, condo owners and associations should prepare for stricter enforcement that could impact everything from property values to insurance premiums.
Table of Contents
- The Condo Compliance Crisis
- HB 913: What It Proposes
- Insurance and Financial Consequences
- New Rules on Inspections and Repairs
- What Condo Owners Should Do Next
- Conclusion: The Future of Florida’s Condo Market
The Condo Compliance Crisis
Florida’s condominium safety laws have undergone major changes since the June 2021 Surfside collapse, but enforcement remains a major challenge.
Low Compliance with Mandated Inspections
Under Florida law, condominium buildings that are at least 30 years old and three stories or taller must undergo milestone inspections to assess their structural integrity. However, compliance has been alarmingly low.
A WLRN report revealed that fewer than 40% of older condo buildings in South Florida have submitted their required milestone inspection reports. This failure to comply poses significant risks:
- Structural dangers: Uninspected buildings may have hidden deterioration that could lead to severe damage or collapse.
- Market instability: Buyers and lenders may lose confidence in condos with missing inspections, lowering property values.
- Potential regulatory crackdowns: State lawmakers are now considering penalties for noncompliant associations.
This growing concern has set the stage for HB 913, which aims to force compliance through financial and insurance-based incentives.
HB 913: What It Proposes
Introduced by State Representative Vicki Lopez, HB 913 is designed to tighten regulations on condo inspections and insurance coverage. The bill will be debated in Florida’s 2025 legislative session (March 4 – May 2).
Key Provisions of HB 913
- Tougher Insurance Rules for Condos
- Citizens Property Insurance Corporation—the state-backed insurer—would be barred from issuing or renewing policies for condominium associations that fail to complete their milestone inspections and Structural Integrity Reserve Studies (SIRS).
- This could set a precedent for private insurers to follow suit, making insurance nearly impossible to secure for noncompliant associations.
- Conflict of Interest Restrictions
- The bill prevents the company performing the milestone inspection from also offering repair or replacement design services.
- This rule is meant to eliminate bias and inflated repair recommendations, ensuring that inspections remain objective.
- Potential Impact on Local Government Inspections
- In counties like Miami-Dade and Broward, inspections must currently be completed before repairs can begin.
- If HB 913 passes, delays could arise as condos seek multiple firms—one for inspection and another for repairs.
By tying insurance eligibility directly to compliance, HB 913 aims to push condo boards into action before structural issues become catastrophic.
Insurance and Financial Consequences
If HB 913 becomes law, Florida’s condo insurance landscape could shift dramatically.
1. Loss of State-Backed Insurance
Condo associations that fail to complete their required inspections could be dropped by Citizens Property Insurance Corporation—leaving them to find private insurance at significantly higher rates.
2. Higher Premiums and Special Assessments
Without access to Citizens’ state-backed policies, noncompliant condos may:
- Face skyrocketing premiums from private insurers.
- Struggle to find any coverage at all.
- Pass increased insurance costs onto unit owners through special assessments.
For many condo owners—especially seniors, retirees, and low-income residents—these rising costs could create serious financial hardship.
3. Decreased Property Values
If insurance becomes too expensive or unavailable, properties in noncompliant buildings may see fewer buyers and declining market value. Lenders may refuse to finance condos that lack proper inspections, further limiting sales.
New Rules on Inspections and Repairs
A major concern with HB 913 is how it will change the inspection and repair process.
Conflict of Interest Restrictions
- Under current rules, many engineering firms both inspect buildings and design repairs—a potential conflict of interest.
- HB 913 separates these roles, ensuring that:
- Inspectors don’t profit from recommending costly repairs.
- Condo boards can get unbiased structural assessments.
While this improves transparency, it may also:
- Slow down approvals in high-demand counties.
- Increase costs by requiring multiple firms instead of a single provider.
What Condo Boards Must Do
- Hire independent inspectors for milestone inspections.
- Seek separate firms for repair designs to comply with HB 913.
- Plan for longer approval times in counties that require completed repairs before inspections are accepted.
What Condo Owners Should Do Next
With HB 913 on the horizon, condo owners and associations must act now to avoid costly consequences.
1. Schedule Inspections Immediately
- Associations should not wait for the bill to pass before getting milestone inspections completed.
- Engineers specializing in milestone and SIRS inspections will likely see increased demand, so scheduling early is critical.
2. Assess Current Insurance Coverage
- If your condo relies on Citizens Property Insurance, find out if your association has submitted its inspection reports.
- Ask whether private insurers may deny coverage based on noncompliance.
3. Prepare for Potential Special Assessments
- If HB 913 passes, noncompliant condos may face sudden costs—from insurance hikes to unexpected repairs.
- Owners should budget accordingly and stay informed on legislative developments.
Conclusion: The Future of Florida’s Condo Market
As Florida’s 2025 legislative session unfolds, HB 913 has the potential to reshape condo insurance, inspection requirements, and property values statewide.
Key Takeaways
✅ Milestone inspections and SIRS compliance are now crucial—not just for safety but for financial security.
✅ HB 913 could leave noncompliant condos without affordable insurance, leading to higher costs and potential property devaluation.
✅ Condo boards must act quickly to ensure compliance, avoid penalties, and protect property values.
With the Surfside tragedy still fresh in memory, the push for stricter condo regulations isn’t going away. Proactive condo associations will not only ensure legal compliance but also help maintain property values and protect residents from financial and structural risks.
The time to act is now.
The Building Recertification Experts – Florida’s Condominium Inspections
- Phone: 941-391-5980
- Email: contact@fleng.com
- Address: 4161 Tamiami Trail, Suite 101, Port Charlotte, FL 33952
Connect With Us
Related Services
- Milestone Inspections
- Energy Calculation Services
- 25,30,40,50,60 Year Recertifications
- Pool Engineering Services
- Turnover Inspections
[This above text is for information purposes only and does not constitute engineering or legal advice. Please consult a professional engineer and licensed attorney for any specific answers to your questions about Milestone Inspections and the legal obligations milestone inspections entail.]
