Champlain Tower settlement nears $1 billion, per tentative agreement
Additionally, review how the event shaped the condo insurance market in its aftermath.
Ahead of the one-year anniversary of the Champlain Tower collapse in Surfside, Florida, a tentative settlement agreement of $997 million has been reached in the class action lawsuit brought by families of victims and survivors of the condominium collapse. The settlement, if approved, involves insurance companies, developers of adjacent properties and other defendants, the Associated Press reported.
A total of 98 people were killed in the June 24, 2021, incident.
Miami-Dade Circuit Court Judge Michael Hanzman, who is overseeing the class action suit, reportedly said the recovery far exceeded his expectations. He previously told Law.com, a sibling outlet to PropertyCasualty360.com, the trial is the most challenging of his career, both legally and emotionally.
Hanzman has said he wants to finalize the settlement ahead of the June 24 anniversary, with payments made to plaintiffs by the fall, according to ABC News.
The combined claims of property owners and family members of the deceased will exceed the funds available, Hazman previously said. In addition to insurance coverage and other damage awards, money from the sale of the property will also be included in the final settlement total.
On May 4, 2022, the court approved a sale and purchase agreement/bidding and sales procedure. The bidding deadline is May 20, 2022, and if an auction is required it will be held on May 24, according to court documents.
Wider insurance implications
Fernando Alvarez, a principal with Miami’s JAG Insurance, said that while the full impact of the Champlain collapse on the insurance industry is still on the horizon, some immediate repercussions were felt.
For example, he previously wrote for PC360.com that receiving credits on rates will become substantially more difficult as insurance carriers will be much stricter when it comes to inspections and recommendations.
Additionally, insurance carriers will be more firm regarding the requirement that building owners complete scheduled updates to the property, according to Alvarez.
“It is not unusual for condominium associations to find themselves penny pinching but such tactics will no longer be viable if they wish to maintain insurance coverage,” he wrote. “Condo associations will be under much more scrutiny as carriers have to be picky. There simply is no other option now. And obviously: Pricing will continue to go up.”
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