Condominium owners do not need as much casualty insurance as a homeowner, as the association is covering much of the structure. The insurance coverage for a condominium owner should include personal property and liability. There are policies for condominium owners, known as form HO-6. These policies will provide the liability and personal property protection a condominium owner needs.
The State of Florida and FS, Chapter 718.111(11) will guide you in what kind of insurance you should have. The statute requires every condominium association to maintain insurance coverage for:
• All portions of the condominium property as originally constructed including replacements of like kind)
• All alterations or additions to the common elements or association property made in compliance with Florida Statutes, Section 718.113(2)
• Excluded from the Association’s coverage and should be included in the Unit Owner’s policy (HO-6) are floor, wall or ceiling coverings, electrical fixtures, water heaters, water filters, cabinets, countertops, appliances, window treatments and personal property within the units.
In addition to the above, 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
• Name the association as an additional insured and loss payee on the casualty portion of the policy
Questions to consider when choosing a condominium (HO-6) insurance policy:
1. Does the policy you are considering include broad water damage coverage for problems such as sewer and drain back-ups?
2. Does your condo association provide comprehensive or blanket coverage to protect you against other condo owners who may not have adequate coverage?
3. Do you have expensive personal items such as jewelry or furs that you may need additional personal property coverage for?
4. Your Policy DOES NOT INCLUDE Flood Insurance. You need a separate policy for this coverage. See Florida Office of Insurance Regulation Press Release – http://tinyurl.com/ygytycc
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