Attention Florida Condo Owners
Starting in January...there are some radial changes to condominium state laws. Every condo unit owner will be required to have interior structure (or contents) coverage. This is also called an HO-6 policy. The new law also gives your association the power to enforce the requirement. This means that if you do not prove that you have the coverage...your association can take out a policy for you and give you an 'assessment' for the cost.
Don't think you can get coverage, show it to your association...then cancel it. Your insurance agent will report your canceled policy to your association...kind of like your No-Fault Auto insurance is reported to the state if you let it lapse.
There are actually many other changes to condo insurance this year. Along with requiring you to carry the HO-6 policy, your condo association must be named in it. This requires that if a claim should be filed...2 signatures are needed for the pay-out. This is mainly the result of the insurance fraud that happen after all of the 2005-2006 hurricanes. People would get paid and not do the repairs...or would hire an unlicensed contractor to do the work.
You also will be required to carry 'Assessment Loss' coverage. Your agent will now the minimum amount that is required. This means if there is damage from a storm )or anything else) to the main building or common areas...like the building's roof for example...and your association has to give a special assessment to unit owners...you would get a payout from your insurance policy. With our risk of hurricane damage, this is a great idea.
Another change is that individual air conditioning units will be covered by the association's master policy. Don't get the wrong idea though. The unit owner is responsible for the maintenance and replacement from wear and tear. The associations responsibility would be due to a fire, flood or storm.
With all of the changes, you might want to contact your insurance agent and verify that you have everything in order for the change. If you don't have any insurance...now is the time to shop around.
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