If you’re considering moving to Florida and planning to live in a high-rise, especially one on the water, think twice.
The ocean, wind, rain, salt air, rising sea levels, and warmer summers are the obvious caveats. But there is much more.
High rises, especially those over five stories that are near the ocean or intercoastal, have expenses that most realtors will never tell you. The reason is that potential high-rise condos on the water need constant maintenance and frequent repair due to Mother Nature and man-made events, such as insurance costs and HOA fees.
Since most realtors will never disclose these potential fees and the threat of rising sea levels, which can increase your HOA and potentially result in eye-popping special assessments.
Here is a list of repairs for a typical building in South Florida, across the street from the ocean.
Being near the ocean, even a mile away, exposes the structure to constant erosion. So, if you plan on spending at least $500,000 to get your dream home in Florida near the Atlantic Ocean, remember the Atlantic is churning 24 hours a day, every day of the year, as it has for millions of years. It does not care about your building.
Here are the factors to consider that can create costly repairs:
Homeowners Insurance
Water leaks originating from within individual units, including a broken refrigerator, toilet, or leaky dishwasher, are common problems that cause costly damage in multiple units in high-rise buildings. These breaks happen in new and old buildings. Snowbirds who leave their condos for months at a time return to find their dishwashers leaking because the gaskets have dried out, as they were not being used. The water in the dishwasher keeps the seals and gaskets from drying out.
While insurance premiums are high, they are far less than tens of thousands of dollars in remediation and repair costs. According to Florida Statute §718.111(11), unit owners must have an HO6 insurance policy that insures:
- Personal property
- Floor, wall, and ceiling coverings
- Built-in cabinets and countertops
- Water heaters
- Electrical fixtures
- Appliances
- Water filters
- Window treatments
- If you are uninsured, owners will be responsible for repairs to these items in your unit.
Administrative Costs, including building staff and lawyers. The state heavily regulates condos and is often the focal point for slip-and-fall lawsuits, conflicts between owners, and disputes over payments. Condo lawyers are not cheap, and liability settlements can cost thousands; all of this impacts on the condo association’s finances.
Golf Courses
Maintaining a golf course in Florida goes against Mother Nature, but the game is why many people move here. Maintaining a course can cost as much as $20,000 a month, including chemicals, mowing, grass replacement, insecticides, weed control, fertilizer, and watering.
Dining Operations
High rises can have multiple restaurants for all meals and alcohol. The restaurants are expensive to maintain and require continuous staffing.
Owners Are Responsible for the Costs of Fixing the Condo Community Property
Elevators
Elevator repairs and maintenance are costly due to the complexity of the systems and their critical role in evacuation during a fire. Since the elevators are in constant use, maintenance is always required. Even standard practices, such as residents holding elevator doors open, strain the safety systems in the elevators. Elevator parts are also costly. Elevator replacement panels cost $750 each, plus $350 to order.
Electrical Surges
Equipment shutdowns from electrical outages and surges continue to cause issues in Florida. Lightning strikes, peak electric use during the summer, and wind cause lines to go down. Lightning is a common problem. Tampa, Florida, has more lightning strikes than anywhere else in the nation. When equipment fails due to power surges, buildings lose elevators, air conditioning, and other critical systems. Installing surge protectors can mitigate the situation.
Electrical Systems
Keeping electrical generator capacity and connections to maintain power during an outage, including elevators and power to common areas.
Air Conditioning Systems
Air conditioning systems are essential in Florida. Large systems are expensive, since they involve condensers, water cooling towers, ventilation maintenance, air handlers, and risers. These system parts can all rust or need repairs.
Condos have many amenities, and owners are responsible for all the costs. Here is a list of items commonly overlooked: Pool maintenance, landscaping, dock repairs, fire pump maintenance, insurance, domestic water pumps for irrigation, and security: (uniformed guards and surveillance).
Be Aware of Florida’s Rising Sea Levels
Although the Florida governor and legislature deny it, global warming and rising water levels in Florida are scientific facts. This video shows the areas that could be underwater in about 100 years. 
This may not affect immediate purchase, but 100 years is not too long in the insurance world, where they are writing and liable for policies that can extend well into the future. Insurance companies are mighty in the mortgage market. If they decide not to insure a zip code, the real estate sales process stops.
This is more critical because Florida is one big hurricane away from a financial disaster. The last few hurricanes have prompted many property insurers to leave the state, leaving homeowners with limited insurance options. Plus, under the Trump administration’s new policies, FEMA will have a reduced role in any recovery efforts.
The danger areas, according to this video, are not just along the Florida coastline, but inland as well, especially areas close to lakes. “Much of Florida’s coastal areas — particularly around the Everglades National Park and Florida Keys — could be largely submerged within the next 100 years,” according to Tom Sorrells of Channel 6 News in Orlando.
“A 1-meter rise in sea level inundates about 10% of Florida, and that’s mostly in the South and Southwest,” he explained.
These projections have already begun to impact people living in the state.
“Even the insurance companies are starting to realize that. It’s going to be harder and harder to get a mortgage and insurance on a coastal property,” Donoghue continued.
“Of course, Central Florida wouldn’t be spared either in that case. According to the estimates, many low-lying areas bordering bodies of water like Lake Jesup and Lake Monroe would also be below flood levels.
“Coastal parts of the region like Volusia County and Brevard County would be heavily impacted, with the map suggesting large portions of the land surrounding the Kennedy Space Center could be flooded by 2120.”
Republicans deny global warming, so the state legislature is not doing anything to address the problem. It is a scientific issue, not a political one, so DeSantis is not concerned about the situation since it does not align with his cultural and political views.
However, future condo buyers in certain areas should be informed. This is not something your real estate agent will ever discuss. Their focus is solely on the sale, not on the details of the purchase. And since Florida is the fraud capital of the U.S., buyers should be informed. And as always, especially in Florida, caveat emptor.
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