A review necessary to cover the cost of insurance

Support local journalism by subscribing here: Special Offer – USATodayNetwork.

Dear Poliakoffs,

I recently received notice from my condominium association that there is a $500,000 shortfall in the budget related to our insurance payments. Starting next month, all unit owners will be charged additional fees to cover this shortfall. To me this seems unfair, as we all pay the agency fees every month as expected – how can they come back to us and charge us more than what they charged us to begin with? Am I wrong about this? Seems like a scam to me.

Saina, RB

Dear RB,

Due to a number of market factors, including the Surfside disaster (the collapse of the Champlain Towers South), many insurers have withdrawn from the Florida market, and the cost of insurance has skyrocketed. Many of our customers have reported savings of hundreds of thousands of dollars. So, if your insurance starts up again this summer, what you described isn’t surprising at all (I’ve heard several reports of similar increases). The agency is responsible for carrying the insurance, and they must pay the costs in some way – the only solution is to raise your premiums. This can be done in one of two ways. The board can change the annual budget and collect additional assessments throughout the year (which is what it sounds like to you), or the board can conduct special assessments to raise enough money to cover the problem.