Condominium coverage can be tricky and require an insurance expert to properly construct your policy to protect you from the exposures you may face depending on how you plan to use the unit. The Florida licensed experts at Harris Insurance have the knowledge and experience to properly protect Condominiums and their unit owners. We’ve been protecting them since they first came to the Gulf Coast in the early 1970s.
Recently, the State of Florida established statutory requirements for Condominium Association Coverage intending to add consistency to the tens of thousands of Associations in how they address insurance coverage and identify what the Association and the unit owner are responsible for respectively in the event of a loss.
This is good news as we can now address the insurance coverage needed by a unit owner without having to consult and interpret the various Association’s documents.
While similar to a Home owner policy in regards to perils you’re insured against, conditions, and exclusions, a Condominium Unit Owners policy (HO-6) has other unique provisions. Specifically, dwelling coverage on an HO-6 policy pertains to the unit owner’s improvements and betterments within the unit. These improvements can be described as everything inside the four enclosed walls including but not limited to: light fixtures, floor coverings, appliances, cabinetry, countertops, non-weight bearing walls, interior doors, and other building improvements inside the unit that stay with the unit if you were to move. This value is hard to determine and escalates quickly, so be sure you’re accurately addressing the amount of replacement coverage you will need.
Additionally, an HO-6 policy can be modified to allow for the rental of the unit and extend liability coverage to the owner while acting as a landlord. The length of time you will allow the unit to be rented, professional management and oversight of the premises are all important considerations. It is also important to know how your policy will work with the Association policy as it may dictate whether your policy will respond, reimburse you or pay on your behalf.
Specific considerations include how the property will be deeded in your name or a corporate entity and whether or not an umbrella policy is appropriate in order to provide you with ample liability protection.