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Sunday, July 4, 2021

Who Will Pay 136 Families FOr The Loss Of Their Condos In Sunrise, Florida?

       Elena is famous for asking brilliant questions about things no one else considered. Yesterday she focused on the collapse of the apartment building in Sunrise, Florida. She didn't discuss the loss of life. What she was curious about was who was going to pay the 136 families for the loss of their apartments.

     I could not come up with an immediate answer. I asked my excellent State Farm Agent Joline Banks.

 She said that the homeowner's association had to pay them for the loss of their units.

    I have had two awful experiences with homeowner's associations from 2001-2004 and from 2010-2017. There is one interesting feature that they offer. A property owner does not have to buy homeowner's insurance. The HOA provides this. I am going to assume that the Champlain Towers South Condo Association provided such homeowner's insurance. Those who survived the collapse of the tower and the heirs of those who did not survive should be able to get a payment (eventually) from the homeowner's insurance policy.

     The problem area is how the families of those killed will get compensation for the loss of their loved ones. The HOA has a $5 million liability policy. That will be exhausted quickly. Some of the apartments in that building were worth over $1 million US. Those who died were often affluent professionals. Payments for their loss could be quite high. Many families will come up short of what their court judgments are.

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