Insurers are making demands of 40-year-old buildings after Surfside condo collapse

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Within days of the partial collapse of Champlain Towers South in Surfside, insurance companies sent letters to owners of condominiums 40 years and older in South Florida, asking for proof that their buildings have passed all inspections, or they will lose their coverage.

The deadly collapse of the 136-unit high rise has spooked an industry that had already considered older condos on the coast — with their hurricane exposure, their common ownership structure and reputation for delaying maintenance — a high risk, experts say.

Now, if a building can’t comply with the insurance requests, the insurer can cancel the policy with a 45-day notice, or choose not to renew the policy, said Isidro “Izzy” Guillama, CEO of ProCom Insurance Underwriters, a Miami-based independent insurance agent who specializes in condo insurance.

But many insurers are not waiting, he said.

“Everybody has moved very quickly because they have a lot of liability, and a lot of risk,’’ Guillama said. “They’re looking at any building that is showing more than 40 years of age, and they’re asking for the recertification of the building.”

But many insurers are not waiting, he said.

Miami-Dade and Broward counties are the only Florida counties that require aging high-rises to go through a reinspection after they reach 40 years of age. Those that fail to make needed improvements can lose their occupancy license.

But the action letters could have a ripple effect across the state if they result in policies being dropped and a tightening of the insurance market.

Half of all Floridians live in property covered by a condominium or home owners association, and there are more than 50,000 community associations in the state, said Travis Moore, lobbyist for Community Associations Institute.

“This is a game changer and the conversation has completely changed in a week,’’ he said.