OWNER Condo Ins Info Edit page

Addressing the “Gap” in coverage every Condo Unit Owner faces.

The truth is that there is a significant and potentially dangerous gap in coverage!  The association’s policy only covers damages to the common elements of the building and  liability arising out of the common areas.  Think of it this way, if you are standing inside your condo unit, from the walls out it is the association's responsibility...from the walls in it is yours.

This concept gets its legal basis primarily from two sources:

• Florida Statutes Chapter 718 The Condominium Act
• The By-laws and Declarations of your Condo Association

  For these reasons, Condo Unit Owners should secure a Condo Unit Owners Insurance Policy, known as an HO-6 policy, to protect their interests and address this gap in coverage.  Failure to do so, could leave you exposed to significant loss from damages to your unit and its contents from a fire, water damage, hurricane or other catastrophe and also exposed to uninsured lawsuits or demands from others for bodily injury or property damage arising out of ownership of the unit.  This holds true regardless of whether you occupy the unit as your primary residence or rent it out to others.

   

  Condo Unit Owners Insurance - HO6 -  Basic Outline of Coverage

  The Condo Unit Owners Insurance policy is like a Homeowners Insurance policy designed for the unique needs of a condo owner.  The policy is divided in four principal coverage sections:

  Coverage A – Dwelling/Structure
  Coverage C – Contents/Personal Property
  Coverage D - Loss of Use
  Coverage E - Personal Liability

  Coverage A – Dwelling/Structure

  This section covers the interior components of your unit that are permanently affixed to the floors, walls, or ceilings. This includes coverings for:

  (1) floors such as tile, carpet, marble, or wood floors and any permanent fixtures affixed to them.  
  (2) walls such as paint, baseboards/chair railings/crown moldings, and window treatments.
  (3) ceiling such as lamps, chandeliers, or other built in lighting.
  Perhaps where we find the most significant exposures covered under this section is in Kitchens and Bathrooms.  All cabinets and countertops are addressed in this coverage as well as many other permanently attached kitchen and bathroom fixtures.

  Coverage C - Contents/Personal Property

  This section is used to cover everything in your unit (not otherwise limited or excluded under the policy) that you can pick up and move.  This includes furniture, TVs and other electronic components, computers, clothing, etc. (There are some limitations for specific types of personal property like Jewelry, Watches, and Furs to name a few.  Consult with your agent as to which items are limited under your policy.)

  Coverage D - Loss of Use

  In the event that you can not live in you unit due to a covered cause of loss, the insuring company will assist you with the extra expense of temporary living arrangements.  Many people forget that as a condo owner you have to continue to pay the mortgage and maintenance fees even if you can not live in the unit do to a loss.  These can be lengthy after a catastrophic event like a Hurricane or Fire.

  Coverage E - Liability

  Provides coverage for Bodily Injury or Property Damage legal liability arising out of ownership of the unit.  This coverage responds in certain circumstances where you are found negligent under the law and legally liable for damages to another party for something that occured in your condo unit.  

  Other Considerations

  You should also pay special attention to the coverage options/endorsements selected under your policy to make sure you are adequately covered.  Here are some of the most important ones:

• Unit Owners Coverage A - Special Coverage
• Personal Property Replacement Cost

• Unit Owners Rental to Others (if applicable)

  Ask your agent to explain what deductibles are applicable to your policy and what Wind Mitigation, alarm, or sprinkler system discounts can be applied based on the characteristics of your unit to lower your overall premium.

  The above description of coverage is intended for informational purposes only.  It does not constitute a legal representation of coverage.  Please consult your actual policy for the terms and conditions applicable to your insurance contract.

  Please feel free to call our quote line for immediate assistance at:

   

  305-222-9895
  https://fl-condoinsurance.com