Florida condo owners and associations must follow specific insurance rules to protect against property damage and liability. Understanding these requirements helps you avoid unexpected costs and ensures compliance with state laws.
Condo association insurance requirements
Florida law requires condo associations to maintain property insurance that covers all common elements, such as roofs, elevators, and hallways. This policy, known as a master policy, must provide replacement cost coverage for insured areas. The association is also responsible for insuring structural elements of individual units, including walls, ceilings, and floors, but not personal belongings or interior improvements.
Associations must also carry general liability insurance to cover accidents that occur in shared spaces. This protects against claims if someone is injured in a common area like a pool or lobby. Directors and officers (D&O) insurance is often recommended to protect board members from lawsuits related to management decisions.
Individual condo owner insurance requirements
While state law does not mandate condo owners to carry individual insurance, many associations require it. A personal condo insurance policy, known as an HO-6 policy, covers your belongings, interior upgrades, and personal liability.
HO-6 policies also include loss assessment coverage, which helps pay for special assessments related to property damage when association insurance is insufficient. If a hurricane or flood damages the building and the master policy falls short, you could be responsible for part of the cost without this coverage.
Hurricane and flood insurance considerations
Given Florida’s unpredictable weather, having hurricane and flood insurance is especially important. Condo association master policies typically cover wind damage from hurricanes, but individual unit owners may need a separate windstorm policy depending on location.
Flood insurance is not included in standard condo insurance policies. If your condo is in a flood zone, your association may be required to have a policy through the National Flood Insurance Program (NFIP). Unit owners can also purchase separate flood insurance to cover personal property and interior structures.
Staying protected with the right coverage
Understanding condo insurance requirements helps you avoid financial risks and legal issues. Reviewing your condo association’s insurance policy and securing personal coverage ensures you’re protected from unexpected expenses. With the right policies in place, you can have peace of mind knowing your condo investment is secure.
