A Handy Guide To Florida Condo Association Insurance

Get a better understanding of Florida Condo Association Insurance requirements and explore the elements that make up the best condominium association coverage.

When it comes to community association insurance, Florida condo association insurance is a key aspect of that equation. While there are always going to be insurance providers that claim to offer their clients "cheaper" insurance policies, they do not always provide the necessary coverage. That's why it’s critical to do the proper research.

Condo association insurance is not the same as condo unit owners insurance. Learn about the type of coverage your association needs, and get help from the experts at Moran Insurance.

A Florida condo association must be sure to do their due diligence when hiring an insurance firm or agent. This allows the condo association to enjoy the peace of mind that comes with knowing that they are in full compliance with Florida law.

Florida Condo Association Insurance Is Required By Law

In accordance with the 2019 Florida Statutes, every condo association in Florida must carry sufficient insurance. Receiving quotes is crucial. Experts recommend taking the time to meet with an independent insurance appraisal firm to find out more about potential costs. These meetings let the client know exactly how much protection they are going to need.

The appraisal lets the client know more about the replacement cost of the insured property and offers them the background needed to make a prudent decision. These costs are determined by establishing the initial costs of the property plus the costs of repair or replacement. Depreciation is not deducted in these instances.

The determination of these values is considered by the insurance board, who will also provide clients with deductibles that are designed to reduce premiums. For these deductibles to remain legal, they must remain in lockstep with the prevailing practices and industry standards.

Condominium Association Insurance is a requirement by the Florida Condo Law

Comparisons are made with other Florida communities of similar sizes. The age and quality of construction are also considered. The entire area where the condominium is located is examined. If there are any reserve accounts or available funds, the deductibles can be based on these.

Any association that is looking to remain protected will have to make sure that they are obtaining replacement cost coverage. This is required by law in the state of Florida. A policy that is centered around actual cash value does not allow a condo association to remain in compliance. The maintenance level and age of the condo play a key role in obtaining a quote.

After all, this is how appropriate coverage is ensured. The agent that the condo association chooses should have a strong understanding of the client's needs. They should also have a strong track record when it comes to procuring various forms of condo association insurance. Those who allow themselves to believe that all agents are aware of their needs are placing themselves in a difficult position.

The Best Insurance Agents Bring Better Results

he best agents will ask for the necessary documentation, have a strong knowledge of any and all bylaws and require their client to provide any relevant information. Some policies may also require a greater level of liability for directors and officers. The bottom line: a Florida condo association must be sure to do their due diligence when hiring an insurance firm or agent. This allows the condo association to enjoy the peace of mind that comes with knowing that they are in full compliance with Florida law.

Key Types Of Condo Insurance For Florida Associations

The best condo association insurance policy is one that protects the interests of homeowners and the association itself.

A basic Florida condo association insurance policy should include:

• General Liability Insurance: No matter how careful you are and which steps you take to protect people on the condo property, accidents can occur. General liability coverage is a broad type of condo association insurance that gives protection for lawsuits related to accidents and damages suffered on site.
• Bare Walls Coverage: This is one of the most essential types of condo association insurance. Bare walls coverage includes coverage for building elements like walls, floors, elevators, and roofing.
• Single Entity Coverage: Unit owners need their own personal insurance policies. Single entity coverage is used to cover anything that isn’t personal property. It can include the basic elements of the building, as well as finishing materials inside each unit. It doesn’t cover any improvements that have been made at a unit owner’s expense.
• All-In Coverage: This is a form of coverage that can be added to a master policy. It can include interior surfaces, floors, ceilings, and other features that are within individual units. The extent of all-in coverage will depend on the bylaws of the association and the agreements that you have in place with unit owners.

Other forms of necessary coverage can include liability coverage for directors, crime and fidelity coverage, equipment and machinery coverage, workers’ compensation insurance, and hurricane or flood insurance coverage.

Each situation is unique, which is why it’s important to talk to leading condo insurance experts in Florida. Moran Insurance can design a policy that is tailored to your association.

Contact The Team At Moran Insurance For Comprehensive Condo Association Insurance

Contact our Condo Insurance experts at Moran insurance for advice and help in picking the best condominium association insurance policy for your needs

Moran Insurance has extensive experience in condominium association insurance and is ready to help you to find the perfect policy that meets your needs. We focus on finding the perfect amount of coverage to protect all residents and stakeholders. Best of all, we will find a policy that is within your financial means.

Every condo association has limitations in terms of a yearly budget. Allow us to find a policy that gives peace of mind, without crippling financial overheads.

We’re available now to discuss your needs and develop a policy that suits you. Contact Moran Insurance now to begin the process, and ensure that your association and vested parties are protected.

Resources and References:

• Statutes
• Insurance