Florida Condo Regulations

[R Levine]

There is a law in Florida where Individual Condo Unit owners are required to add the Condo Association as an Additional Named Insured. My Agency insures the Association. We were asked to assist the unit owners that are having difficulty with their carriers endorsing the policy accordingly. I have no standard markets that will write in Florida. Any suggestions would be appreciated.

[mightyjoe44]

What state are you located in? Where is the condominium located. Most of the carriers I work with are now starting to comply - many had to wait to get new policy forms approved by the state as the additional insured endorsement is not usually part of a condo policy.

[Phil the ins guy]

I have a client with a condo in Flordia. He emailed me this morning he secured a low limit policy meeting the requirements for $346 annually from Homewise Insurance.

Among other requirements association additional insured status for $2,000 coverage A is required.

[R Levine]

Mightyjoe, my agency is in NY. The insured is in Florida. The new law is a Florida State requirement.

[fjscerbo]

The way I understand it, the law is still pending multiple lawsuits. Right now we have been placing new condo coverage and naming the associations as additional insureds in compliance as if the law took effect without any issues (Some carriers have requested a letter on the association's letterhead requesting to be named as an additional insured in order to process the endorsement.) However, I believe it will be repealed in the months to come. Again, the way I understand it is that Florida law now gives the associations power to require/not require unit-owners to insure - Florida law will not directly require unit owners to insure, but give the associations power to make that call for each individual association.

The $2,000 requirement is for Loss Assessment coverage. Any new HO policy written after January 1, 2009 will include $2,000 loss assessment coverage. And I understand that any HO policy that renews after January 1, 2009 will do the same. The state mandated limit used to be $1,000.

[TheInsKid]

This is what we know and how we are handling, all of our carriers have told us they are ready to go forward adn in fact, we have had several renewals and they have the coverage on the policy.

Recently, the Florida legislature passed House Bill 601, which applies to all condominium policies issued or renewed after January 1, 2009. If you have condo insurance, this will affect your policy. If you do NOT have condo insurance, take note!
Increased Loss Assessment: The new law requires that your condominium policy provide special loss assessments coverage of at least $2,000. So, if your current policy has a limit of liability of less than $2,000 for Coverage G, Loss Assessments, most companies will automatically increase your limit to $2,000 effective on January 1, 2009, at no additional cost to you.

Condominium Association Treated as Named Insured/Loss Payee: In addition, 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 Coverage A, 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.