Citizens Property Insurance leadership met with local officials and condominium associations in Marathon on August 25 to address concerns about insurance coverage, particularly regarding roof conditions and nonrenewals. The meetings, organized by Fair Insurance Rates in Monroe (FIRM), aimed to clarify the distinction between a building being legally compliant and being insurable.

Compliance vs. Insurability

Jay Adams, chief insurance officer for Citizens Property Insurance, explained that a building's compliance with state regulations, such as those enacted after the 2021 Surfside condominium collapse, does not automatically guarantee insurability. He noted that one local condominium association recently had five of its eight buildings non-renewed by Citizens due to roof conditions.

The stricter statewide requirements following the Surfside collapse mandate that condominium associations undergo milestone inspections and structural integrity reserve studies (SIRS). Adams clarified that while milestone inspections focus on safety and structural condition, they do not determine the remaining useful life of a roof. That assessment is part of the SIRS report, which requires inspectors to evaluate components and estimate their remaining useful life, determine replacement costs, and establish a funding formula for future replacements. Adams described the SIRS as a long-term financial planning tool.

Underwriting Standards and Roof Lifespans

From an underwriting perspective, Citizens considers not only the age of a roof but also its resistance to losses. Adams stated that Citizens has some of the most lenient lifespan standards for roof coverings among insurers in Florida. For a flat roof, such as a built-up, three-ply modified bitumen membrane, the eligibility standard is 15 years. After reaching the 15-year mark, Citizens expects consideration for roof replacement.

Adams also emphasized that applying new coatings to an aging roof does not alter the underlying age or condition of the roof system. He likened it to applying a coating to a 15-year-old roof, stating it does not reset the age or address potential underlying issues like wet insulation or deteriorated fasteners. Citizens' legal team is reportedly addressing South Florida companies that market roof coatings as acceptable to Citizens, a practice that may constitute false advertising.

Public Frustration and Disputed Timelines

The afternoon session, open to the public, saw heightened frustration from condominium association leaders and building owners. Attendees voiced concerns about what they described as inconsistent, punitive, and sometimes fabricated inspection results and roof life timelines. Citizens leaders reiterated the difference between state-mandated inspections, reserve studies, and the insurer's own underwriting evaluations.

However, some attendees felt the discrepancies led to a costly guessing game, with associations facing significant bills and short deadlines for roof replacements based on disputed inspection findings. One board member shared an experience where his association waited months for an inspection report, only to be told a roof replacement was needed in less than two months, during hurricane season, to maintain coverage.

Another speaker highlighted the disparity between a reserve study recommending 10 years for financial planning and an insurer's demand for replacement within one year. Fred Swanson, a condo owner in Key Colony Beach, stressed the importance of clear communication from Citizens regarding their timelines for financial planning. "If (Citizens) has a tighter plan, that’s what we need to know. Don’t keep it to yourself – tell me now, 15 years ahead," Swanson stated.

The president of Coconut Mallory Resort condominiums in Key West, a property that experienced nonrenewals, questioned the accuracy of an inspector's report. He reported that an inspector cited cracks in the building's parking lot, which he described as brick pavers, and recommended a new roof on a building that had a complete roof replacement with a 20-year warranty just five years prior. He questioned the inspector selection process and the possibility of challenging their findings. The town hall was broadcast on Monroe County Television and will be available on FIRM's website and YouTube.

For more information on insurance issues in the Keys, residents can refer to reports from Keys Weekly. Information on Florida's insurance market can also be found through organizations like Florida Realtors.