Insurance Coverage and Claims – Condo Living

Posted on October 10th, 2010

You live in a condo and think the condo association covers damages in your unit, think again! It’s very important that every Florida condo owner have specific knowledge about where their insurance coverage begins and ends. Unfortunately, we find in our business that many condo owners really believe that since their condo association has insurance that’s enough to cover all damages. This is not true.

A recent insurance claim we were contacted about proved this point. The unit owner left her apartment for the afternoon, when she returned the entire unit was soaked in 3 inches of water. It was so bad, the unit below sustained water damage. The cause of this mess was a weak water line connection to the refrigerator, it can happen to anyone. Well, this women contacted the association regarding the insurance claim. The association informed her that the damage to her unit and the condo below is not covered by the association. This is a common scenario.

Typically, the condo association has insurance coverage to repair and replace drywall and all the contents in the drywall – plumbing, electrical, insulation, etc. This particular owner did not have any insurance and the total damage sustained was $50,000.00. This is a shocking situation to be in, especially when you are under the impression your covered.

Now you know, so please pass it on and spread the word. Get covered.

Here’s a great Youtube video discussion about this topic. Be sure to contact a professional in your area to find out what specific laws and regulations apply to your condo.

Tags: Condo Insurance
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Condo Insurance Change July 1

Posted on June 24th, 2010

Radey Thomas Yon & Clark is an AV-rated firm located in Tallahassee, Florida. On their website, the firm hosts a blog that updates the public with relevant legal information, with a focus on insurance and employment issues. Recently there was an update posted by Travis Miller on the topic of Condo Insurance law and changes that will take place beginning July 1, 2010 – related mostly to Chapter Law 2010-174. We all recognize that South Florida is home to many condos in Boca Raton, Ft. Lauderdale, Plantation, West Palm Beach, Delray Beach, Aventura, Hallandale, Bal Harbour, Miami Beach, and the surrounding areas, this makes changes to condominium associations and unit owners’ policies particularly relevant to residents in our area.

Mr. Miller points out three essential areas of change: Loss Assessment Coverage, Adequate “Property” Insurance, Unit Owners’ Coverage.

Loss Assessment Coverage:

“…The statute continues existing law by requiring unit owners’ policies to provide at least $2000 in property loss assessment coverage.”

Adequate “Property” Insurance:

“…A reference to determining the “full insurable value” of condominium property every three years is being updated to require the “replacement cost” to be determined every three years.”

Unit Owners’ Coverage:

“…Under existing law, the association policy excludes personal property within the unit or limited common areas, and floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments including curtains, drapes, blinds, hardware and similar window treatment components.  The new law clarifies these items are the insurance responsibility of the unit owner to the extent they are within the boundaries of the unit and serve only the unit.”

Read Mr. Miller’s full blog post for a few more changes regarding unit owner’s coverage. There are several other areas that are vital for South Florida condo owners, in Broward and Dade,  to understand. Rami Boaziz, Public Adjuster, will guide you through this process and make sure you understand the new changes taking place.

Tags: Condo Insurance
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