New Condo Insurance Law Explained

Recently, the Florida legislature passed House Bill 601, which applies to all condominium policies issued or renewed after January 1, 2009. If you do NOT have condo insurance, take note! Your condo association will have the ability to “force place” insurance, if not obtained on your own.

Increased Loss Assessment

The new law requires that your condominium policy provide special loss assessments coverage of at least $2,000.

Condominium Association Treated as Named Insured/Loss Payee

In accordance with the new law, your condominium association will be treated as a named insured and loss payee for covered reconstruction costs related to any condominium property that the unit owner is required to insure. This change does not increase your policy’s coverage. It simply means that the condominium association will be named, in addition to you, on any loss payments made under Building Property Protection, of your policy. This change does not provide the condominium association with the right to cancel your policy. They are listed as an Interested Party on your insurance in order to coordinate coverage in the event of a loss in which both parties are responsible.

Providing Evidence of Hazard and Liability Coverage

The new law also requires condominium unit owners to provide proof of hazard and liability insurance to the association. You only have to provide evidence once a year. Your Policy Declarations and this letter should suffice as adequate proof of coverage and your compliance with the new law. If you have any questions about how this will affect your insurance policy, or to have your condo association listed on your policy, please call us today for a full protection review.