A Florida Statute Affected Hazard Insurance Policies Issued To Condominium Associations Effective January 1, 2004.
The Florida legislature has made significant changes between the obligation of condominium associations and the individual unit owners. By law, it is now very clear in regards to the responsibility between the association and individual unit owner and whose coverage will respond to a claim.
The association's policy will not provide coverage for floor, wall and ceiling coverings, electrical fixtures, appliances, air conditioners or heating equipment, water heaters, water filters, built-in cabinets and countertops, window treatments including curtains, drapes, blinds, hardware, and similar window treatment components, or replacements of any of the foregoing which are located within the boundaries of a unit and serve only one unit and all air conditioning compressors that service only an individual unit, whether or not located within the unit boundaries.
It does not matter what is written in your association document. The new law supersedes your document and the above mentioned will apply in the event of a claim.
Please review your policy. It might be appropriate for you to increase your coverage on the building also. Now would be a good time to call our office for a complete review of all your insurance protection.
Please keep in mind that your policy does not automatically provide coverage for flood. If you feel you have an exposure you need to call us at once.
It takes thirty days for the coverage to go into effect once the application has been submitted.
Your association may or may not have flood coverage. If they do, they might not have purchased enough coverage to replace the building. Some of the condominiums on the beachside in New Smyrna experienced erosion. Even if you are on the top floor, you could have a flood loss if the building is undermined and collapses. You can purchase coverage for your contents and also for your share needed to rebuild.
Most of our insureds have purchased loss assessment coverage but few understand its limitations.
If your association has elected to carry a high deductible, no coverage at all or the coverage is not a covered peril under your policy, then most assessment forms will only pay up to $1,000 or nothing at all.
Talk with your Association manager regarding the coverage limits and deductible amounts of your building for wind loss and flood. Then call our office for a review. Also, keep in mind, the time to do this is now. Once a hurricane has formed, insurance companies do not allow changes.
Thank you for taking the time to read this, for your business and for allowing us the opportunity to protect your dreams. Have a great hurricane-free season.