Q&A: Condo Insurance RequirementsPublished: 22 January 2010 - Author: Lisa Magill
Readers have submitted quite a few questions in the last few weeks regarding insurance for condominium property and responsibility for repair of damages. Section 718.111(11), Florida Statutes, requires every condominium association to maintain insurance coverage for:
- All portions of the condominium property as originally constructed (including replacements of like kind); and
- All alterations or additions to the common elements or association property made in compliance with Section 718.113(2), Florida Statutes, but excludes:
- Floor, wall or ceiling coverings, electrical fixtures, water heaters, water filters, cabinets, countertops, appliances, window treatments and personal property within the units.
Every unit owner is required to carry coverage for their unit and any improvements or modifications made to their unit (or limited common elements). Unit Owner coverage must:
- Be excess to the association’s coverage;
- Contain at least $2,000 of loss assessment coverage; and
- Name the association as an additional insured and loss payee on the casualty portion of the policy.
As for specific questions by readers:
What is the new law concerning condo air-conditioners? Is there a new law?
The association’s insurance policy must include coverage for the HVAC system – the air conditioning units, compressors, thermostats, duct work, etc., when in the past air conditioners serving the unit were insured by the individual unit owner. Community leaders and managers make sure these items are included in the current appraisal so there is enough coverage in the event of a loss.
I have heard from someone that this LAW (just the other day) has been overturned ..can you verify this?
The Florida legislature passed a bill that would have eliminated the Unit Owner coverage mandate, but that bill was vetoed by the Governor. Consequently, every Unit Owner is required to purchase insurance coverage and provide evidence of the coverage to the association when asked. If the Unit Owner fails to comply, the association actually has the option of buying coverage for the unit and charging the owner for the expense. The charges can be included in a lien against the unit and the association can foreclose if the owner still refuses to reimburse it for the insurance expense.
For more information regarding the vetoed bill, please refer to an earlier post by clicking HERE.