Community Associations Network Industry News

TALLAHASSEE, Fla., Jan. 10 /PRNewswire/ -- Representatives of Florida condominium and homeowner associations statewide are lobbying legislators meeting in the state capitol this week to include language in upcoming legislation that will let associations band together for the first time to collectively bargain to hold down skyrocketing property insurance rates for Floridians living in condos and HOAs.

The core of the effort, led by the Community Association Leadership Lobby (CALL), an advocacy group formed in 2003 to advance the interests of community associations statewide, focuses on substituting language in an obscure clause in state Statute 624 that for years has specifically blocked more than 48,000 Florida condos, HOAs and other community associations from organizing to get better insurance rates.

New legislative language put forward by CALL and under consideration this week by banking and insurance committees in both the Florida Senate and House of Representatives could have a positive impact on upwards of 4 million community association property owners and residents, by removing a specific restriction against community associations that has kept them from organizing into not-for-profit "self-insurance funds" for pooling and spreading their liability risk on commercial property or casualty or surety insurance.

Property owners and residents living in Florida common-interest ownership communities have been among the hardest hit by spiraling insurance rates in the state, for several reasons. Unlike most other homeowners in Florida, for example, community association property owners are required as an association to carry full replacement value coverage on their buildings and facilities. At the same time, they must carry commercial/residential insurance policies, premiums for which have risen sharply because there are now only two re-insurance companies underwriting those types of policies in Florida.

"Because Florida law has specifically denied them the right to organize to spread their insurance risk across community associations throughout the state, to date these common-interest ownership communities have been unable to effectively act to halt the skyrocketing insurance rates that are wreaking havoc on their community finances," said Donna D. Berger, CALL Executive Director and a community association attorney with the Ft. Lauderdale-based firm of Becker & Poliakoff.

"State Representatives and Senators meeting in Tallahassee this week and next have an historic opportunity to change the law in this regard and give millions of property owners and residents of Florida community associations the same rights already granted many industry and professional organizations to band together in order to spread liability risk and obtain better insurance rates for their communities," Ms. Berger said.

The proposed change to the law under consideration by legislative committees in Tallahassee this week and during the Special Legislative Session that kicks off Jan. 16 would give groups of community associations the same rights as other groups to organize into so-called "commercial self-insurance funds" operating through a not-for-profit trust or corporation. Other groups that currently have that right, for example, include not-for-profit trade associations, industry associations, or professional associations of employers or professionals, as well as groups of health care providers.

If passed by the respective banking and insurance committees in both the Florida House and Senate, the legislation would proceed to the floor of each chamber for a vote next week. If passed, the legislation would take effect immediately upon being signed into law by Governor Charlie Crist and would require the state's Department of Business and Professional Regulation to adopt rules for its implementation.

In October, CALL released results of a statewide survey of residential property owners in Florida community associations that found 87 percent of respondents said they will be liable for increases in storm-related insurance costs in their communities this year. Nine out of ten respondents to the survey said "No" when asked if elected officials are "doing everything they can to keep insurance costs reasonable for homeowners in Florida," and nearly two-thirds (64 percent) said they want more government regulation of the private insurance industry.

More information about the activities of the Community Association Leadership Lobby (CALL) and its insurance survey of property owners in community associations statewide can be found at the organization's website online at: www.callbp.com.

About the Community Association Leadership Lobby (CALL)

The Community Association Leadership Lobby is the leading organization working to enhance the quality of life and protect property values for Florida's community association residents. CALL advocates on behalf of more than 4,000 member communities, including condominiums, homeowners' associations, mobile home communities and cooperatives throughout the state. More information on the Community Association Leadership Lobby can be found at www.callbp.com.

Posted by Joe at 9:14 AM | Permalink

FORT LAUDERDALE, Fla., Aug. 22 /PRNewswire/ -- One year after Hurricane Katrina swept across the Gulf Coast, hurricane victims, joined by the Academy of Florida Trial Lawyers (AFTL) and the Association of Trial Lawyers of America (ATLA), are today launching a national petition drive calling on insurance companies to put policyholders over profits by paying fair and just claims to area residents who find themselves near ruin.

AFTL and ATLA also released a report today, "Pattern of Greed: How Insurance Companies Put Profits Over Policyholders," which shows the insurance industry has made a practice of collecting billions of dollars from policyholders over the years and then stiffing them in their time of greatest need after various natural disasters. Meanwhile, the insurance industry is making record profits. To view both the petition and the report, visit http://www.peopleoverprofits.org/disaster_report.pdf.

"While the insurance industry enjoys record profits and CEOs bulging bank accounts, too many residents of the Gulf region are left waiting for the settlements they deserve to help them get back on their feet," said AFTL President Ed Zebersky. "Whether it be an earthquake, tornado or a hurricane, insurance companies have engaged in questionable tactics over the years to delay or deny the payment of justified and fair claims. That is why we are urging the insurance companies to clean up their act and pay fair and just claims once and for all."

"This mistreatment by our insurance company is unfair for our association because we have not filed a claim in 25 years. It is unfair to senior citizens on fixed incomes to have to come up with the money because insurance companies are playing games," said James Ofstein, board president of the Embassy Condominium Apartment Association, whose building in Ft. Lauderdale suffered significant damage as a result of Hurricane Katrina. Ofstein is using the civil justice system to hold his insurance company accountable for refusing to pay 100 % of what their association deserves.

"As long as our insurance company continues to act irresponsibly and fails to pay fair and just claims, the last resort for our association and its homeowners to hold the company accountable is the civil justice system," added Mr. Ofstein.

The report notes Hurricane Katrina is just the most recent example of insurance industry indifference. The storm caused an unthinkable $135 billion in damage, leaving thousands homeless, jobless and bereft of hope. Facing their darkest hour, residents from the Gulf region find themselves victimized a second time by an insurance industry offering pennies on the dollar, refusing to honor many agreements and not paying policyholders what they are deserved.

The report details a troubling pattern of questionable tactics used by insurance companies after earthquakes, tornados and other hurricanes to delay or deny the payment of fair and just claims. Meanwhile, as the report notes, insurance companies continue to increase their profits, posting a record industry-wide profit of more than $40 billion for 2005.

The report also highlights how some insurance companies may have even engaged in fraud. In Mississippi, Attorney General Jim Hood is charging that adjusters for some firms tried to trick Katrina victims out of millions of dollars in homeowner claims.

Posted by Joe at 10:26 AM | Permalink