What happens to the value of a condo?

What will happen is: “nothing”. Nothing will happen. The value will continue to go up over time, and your assertion that it’s a “losing investment” will continue to be wrong. Because you are wrong. And you’ll continue to be wrong. The only thing that’ll matter is if there are zoning changes.

What happens if a condo association goes bankrupt?

The building deteriorates and the condo association doesn’t have enough income to keep going. The association would go bankrupt and the lenders would foreclose on the individual units. At some point, possibly, a developer would enter the picture, buy the foreclosed units cheaply, and put something else up, if the area is economically viable.

Are there any condos that will be demolished?

Very few condo buildings will ever be demolished. Mostly all will continue to either get older or be updated with the agreement of the majority of the unit owners. Just like private homes, very few people decide they will tear down their home to build something new. I don’t understand why you consider these a losing investment.

What happens if you stop paying your condo fees?

What often happens is that people first stop paying their condo fees. Then they move out and stop paying their mortgages. The building deteriorates and the condo association doesn’t have enough income to keep going. The association would go bankrupt and the lenders would foreclose on the individual units.

Why do condo owners have to pay for loss assessment?

Many condominium boards decide on large deductibles to reduce the association’s overall cost of insurance. When losses occur, if the association does not have money set aside in reserves for damages, they typically look to the unit owners to come up with the deductible.

Is there deductible for condo loss assessment in Florida?

Unfortunately, most condo policies (especially in Florida) will only provide $1,000 if the assessment is the result of an association’s deductible. Therefore, it is very important to review your association’s insurance policies at least annual to review the limits and deductibles. Does Loss Assessment Coverage Have a Deductible?

How much does it cost to rebuild a condo building?

The building was insured at $1,000,000 per the most recent appraisal, but the actual cost to rebuild is $1,100,000 due to inflation. To pay for the additional $100,000 the association decides to assess each of its 10 unit owners $10,000.

How much loss assessment is required for a ho6 condo in Florida?

Each HO6 condo unit policy automatically includes loss assessment coverage. And in Florida each HO6 policy is required to provide at least $2,000 in coverage per the Florida Statutes. The coverage is excess over any other policy covering the same property, so the association’s policy should always respond first.