RESERVE STUDYSIRS INSURANCE
STRUCTURAL INTEGRITY RESERVE STUDIES ARE NOW MANDATORY — AND CARRIERS ARE WATCHING.
FLORIDA NOW REQUIRES FULL FUNDING FOR STRUCTURAL COMPONENTS.
Recent Florida legislation requires associations to conduct structural integrity reserve studies and fully fund reserves for major structural components — roof, load-bearing walls, foundation, floor, fireproofing, plumbing, electrical, waterproofing, and windows. Associations can no longer vote to waive or reduce reserve funding for these components.
Carriers view underfunded reserves as a direct underwriting risk. An association that cannot fund a major repair from reserves will need a special assessment — and if owners cannot pay, the building deteriorates further. Kelly Insurance Group includes reserve study results in every underwriting submission to demonstrate financial stability alongside the milestone inspection results.
RESERVE STUDY SIRS INSURANCE — ANSWERED.
WHAT DOES THE SIRS REQUIREMENT MANDATE?
Structural integrity reserve studies for major components — roof, walls, foundation, floor, fireproofing, plumbing, electrical, waterproofing, windows. Full funding required. No more waiver votes.
HOW DO RESERVE LEVELS AFFECT INSURANCE PLACEMENT?
Underfunded reserves signal higher risk. Carriers see associations that can't fund repairs as deterioration risks. Fully funded reserves improve underwriting profile and pricing.
WHAT IS THE DIFFERENCE BETWEEN SIRS AND THE MILESTONE INSPECTION?
Milestone inspection evaluates structural condition. SIRS evaluates whether reserves are adequate to fund repairs. Inspection says what's wrong. Reserve study says whether you can pay to fix it.
CAN ASSOCIATIONS STILL WAIVE RESERVE FUNDING?
Not for structural components covered by SIRS. Waiver votes for these components are no longer permitted under current Florida law.
HOW DOES SIRS INTERACT WITH SPECIAL ASSESSMENTS?
Properly funded SIRS reduces the need for special assessments. Underfunded reserves force special assessments when repairs are needed, which creates loss assessment exposure for owners.
WHEN MUST THE SIRS BE COMPLETED?
Deadlines are set by Florida statute and depend on building age and prior study completion. Associations should consult their attorney for specific deadlines and begin the study well in advance.
DEMONSTRATE FINANCIAL STABILITY TO YOUR CARRIER.
Kelly Insurance Group includes reserve study results in every submission — fully funded reserves improve placement and pricing. Since 1881.
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