The Hidden Risk Your Community Faces
Many condo and homeowners associations are unknowingly exposing themselves to significant financial risk through outdated insurance appraisals. As construction costs fluctuate and properties undergo improvements, your insurance coverage needs to keep pace—or your community could face devastating shortfalls after a disaster.
Five Compelling Reasons to Update Your Association’s Insurance Appraisal
1. Construction Costs Have Skyrocketed
Material and labor costs have seen unprecedented increases in recent years. The price of lumber, steel, concrete, and skilled labor has risen dramatically, meaning your association’s previous replacement cost estimates are likely severely outdated. Without an updated appraisal, your community is almost certainly underinsured.
2. Florida Law Requirements
Florida statutes mandate that condominium associations maintain adequate insurance based on the “full insurable value” of the property. Outdated appraisals put your association at risk of non-compliance with state law—potentially creating liability for board members and management.
3. Avoid Special Assessments After a Loss
When insurance coverage falls short after a disaster, the financial burden falls directly on unit owners through special assessments—often at the worst possible time. Updated appraisals ensure insurance proceeds will cover actual rebuilding costs without additional financial strain on residents.
4. Protect Your Community’s Value
Proper insurance coverage based on current replacement costs protects property values throughout your community. Prospective buyers and lenders increasingly scrutinize association insurance practices, making accurate appraisals an important factor in maintaining market value.
5. Storm Season Preparedness
With Florida’s hurricane season becoming increasingly unpredictable, having accurate insurance coverage isn’t just good practice—it’s essential risk management. An updated appraisal ensures your community won’t face coverage gaps when you need protection most.
When Appraisal Updates Are Critical
- It’s been 3 years since your last professional appraisal
- After significant renovations to common areas or building exteriors
- Following major infrastructure improvements (roofing, HVAC, etc.)
- When construction costs have increased substantially
- Before insurance policy renewal to ensure coverage accuracy
How Prestar Services Delivers Superior Value
Prestar’s comprehensive approach includes full replacement-cost appraisals with precise measurements and high-resolution photography, all fully compliant with Florida statutes. For communities with recent appraisals, our cost-effective update service (40-60% of a full appraisal) provides accurate adjustments for construction-cost inflation and recent improvements.
Our specialized services, including wind mitigation inspections and roof condition assessments, can identify potential insurance credits while ensuring your coverage reflects your property’s specific features and condition.
Don’t wait for a catastrophic event to discover your association is underinsured. Contact Prestar Services today to schedule a professional appraisal that delivers peace of mind and statutory compliance.
