The Orlando Condo Blog

Orlando's Real Estate Pulse…

Q&A: Condo Insurance Requirements

Published: 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.

Comments

  1. Murrf wrote:

    718.111 states that the master policy must cover HVAC. Is it mandatory that the association is responsible for repairs, maintenance and replacement of the HVAC, if needed? Or is it the unit owners responsibility? A compressor on the roof needs to be replaced because the vibration is a disturbance to top floor neighbors? Who pays for it?

  2. JULES LEVINE wrote:

    Dear ms. Magill,

    Regarding air-conditioners, I could find no relevant FL718 paragraph except 718.1265 (1) (k) Association emergency powers.

    It doesn’t relinquish the Owner’s liability for insuring and paying for cost of repair to A/C units.

    Wouldn’t your interpretation unecessarilyadd substantial cost to the Association’s insurance premium?

    Regarding air-conditioners, I could find no relevant FL718 paragraph except 718.1265 (1) (k) Association emergency powers. Is their another reference I’m missing?

    718.1265 (1) (k) doesn’t relinquish the Owner’s liability for insuring and paying for cost of repair to A/C units.

    Wouldn’t your interpretation unecessarilyadd substantial cost to the Association’s insurance premium?

  3. Lisa Magill wrote:

    Hello – the insurance section of the Condominium Act changed again as a result of the 2010 legislative session.

    Nonetheless, HVAC (including air compressors and air handlers) if part of the original construction, must be insured by the Association in the master policy. Section 718.111(11) says the Association must insure “all portions of the condominium property as originally constructed…” minus a list of items such as floor, wall & ceiling coverings, appliances, countertops, etc.

    Repair & Maintenance under normal circumstances is different than casualty repair. The condo documents will specify whether the unit owner bears responsibility for repairs and maintenance of the a/c (which is typical). So, if your unit freezes up or vibrates too much you (as the owner) are probably responsible for the repairs or maintenance.

  4. insurance guy wrote:

    Interesting, I live in California and if my HVAC goes out, I’m outta luck. My association would laugh at me if I asked them to replace the old, broken unit.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*

*