Florida enacted legislation last year to allow condominiums to take greater control over the costs and availability of hurricane coverage through the formation of self insurance trusts. The Palm Beach Daily News reported last week that the Palm Beach Windstorm Self Insurance Trust was the first group in the state able to meet new hurricane-damage requirements.
The trust now has 58 condominium and cooperative members. The experimental program is meant for gibber buildings. All condominiums and cooperative associations taking part in the trust have values of more than $10 million. To participate, each condo association has to select an agent.
The rates are slightly lower that coverage offered by Citizens Property Insurance Corporation, and may become more attractive after an anticipated rate increased by Citizens Property Palm Beach Windstorm Self Insurance Trust, with a 5 percent deductible, can have 35 percent lower rates that Citizens with a 3 percent deductible.
