Insurance for Condos
In most cases, the building’s structure and common areas are protected under a “Master Condominium Policy” held by the condo association. But as of January 1, 2009, nearly every condo association in Florida requires residents to have their own insurance covering the interior construction of their units.
Our team is well-versed in the nuances of condo living and can help you find the coverage you need.
What are you responsible for?
As a condo owner, you are typically responsible for all interior construction and fixtures within your unit. This includes flooring, drywall, cabinetry, and more. You are of course, also responsible for all of your personal property within the condo. Insuring furniture, electronics and other personal property is the responsibility of the condo owner.
Components
The following components will make up your condo insurance coverage:
Dwelling and personal property protection
This is the coverage that will protect the inside of your condo as well as its contents. There are a number of options available for coverage, so it’s best to speak with one of our professionals to determine what is right for you. Contact us today for more information.
Family Liability Protection
This coverage provides legal representation and insurance against judgments. We recommend no less than $300,000 in coverage for liability.
Additional Living Expenses
If you do have a loss at your condo, this protection can cover expenses during the period of reconstruction.
Guest Medical Coverage
This coverage can reimburse medical expenses incurred by guests who have had an accident on your property.
Loss Assessment
In a condominium, sometimes the association requires an assessment on all unit owners for certain covered losses. This coverage will pay your share.
Condo Insurance Law
Florida House Bill 601, applies to all condominium policies issued or renewed after January 1, 2009. If you do NOT have condo insurance, take note! Your condo association has the ability to “force place” insurance, if not obtained on your own.
Increased Loss Assessment
The new law requires that your condominium policy provide special loss assessments coverage of at least $2,000.
Condominium Association Treated as Named Insured/Loss Payee
In accordance with the new law, your condominium association will be treated as a named insured and loss payee for covered reconstruction costs related to any condominium property that the unit owner is required to insure. This change does not increase your policy’s coverage. It simply means that the condominium association will be named, in addition to you, on any loss payments made under Building Property Protection, of your policy. This change does not provide the condominium association with the right to cancel your policy. They are listed as an Interested Party on your insurance in order to coordinate coverage in the event of a loss in which both parties are responsible.
Providing Evidence of Hazard and Liability Coverage
The new law also requires condominium unit owners to provide proof of hazard and liability insurance to the association. You only have to provide evidence once a year. Your Policy Declarations and this letter should suffice as adequate proof of coverage and your compliance with the new law. If you have any questions about how this will affect your insurance policy, or to have your condo association listed on your policy, please call us today for a full protection review.
If you have additional questions about the Florida Condo law, please speak with one of our insurance professionals who will be happy to answer your questions. Contact us today!
