Condo Insurance Law In Florida

I have had several clients in the last three months asked me about the law for condominium insurance. It seems there is a lot confusion and lack of correct information.  The big questions is: Is it still mandatory for each unit owner to carry personal HO-6 insurance policies?

The answer is Yes!

This is a small review of what is the actual law and the modification:

A Florida law, often referred to as "Homeowners 6" took effect on January 1, 2009, affecting all owners of condominiums in Florida. Under the new law, Florida condominium owners are required to take out a new type of insurance policy that provides coverage to all contents within the condominium unit. The insurance policy closes a gap in coverage by providing coverage to all items in the unit that are otherwise included in general condominium association insurance policies.

General condominium association insurance policies, which are taken out by the condo association to cover the structure and communal areas of the condominium building, only cover the reconstruction of structural materials, such as bare walls, in the event a condominium unit was damaged or destroyed. The general condominium association insurance policies do not cover the replacement of interior fixtures such as carpet, cabinets, hardwood floors or tile. Instead, insurance policies taken out by the owner of the unit, such as homeowner insurance policies, are left to cover those replacements.

The newly required insurance policy covers the replacement of all the interior fixtures not covered by general condominium insurance policies. Previously, condo associations could elect whether or not to require this additional insurance but as of January 1, 2009, this additional insurance is required. All condominium owners in Florida are required to take out additional coverage under Florida law and provide proof of their all-inclusive homeowner insurance.

However, the condo associations are tasked with policing compliance under the law. It is up to condo associations to ensure all condo owners are in compliance and have sufficient homeowner insurance to cover the cost of interior fixture replacement in the event of a catastrophe.

To tell you the true for my experience I don't see many HOA enforcing the law,  I think this is simply because they don't have the system to follow up with the proof of insurance. However, if you chose not to have condo Insurance it is always good to know that you are not in compliance with the law.

The Florida legislature passed a bill that would have eliminated the Unit Owner coverage mandate,  but that bill was vetoed by the Governor. I will explain this in my next blog.

If you have further questions please contact me.

visit my web http://www.es-insurance.com/