FLORIDA/TEXAS—A condominium complex will most likely include shared amenities like parking, gym, pool, and even office facilities. These features make the community much more appealing for its residents and also provide an opportunity to make friends among your very own neighbors. Most residents would select their place to live factoring in price, location, and of course the quality of their amenities, considering they fit their lifestyle.

Public property must be insured and  the condo association that handles the maintenance of these amenities needs to have them insured.

A Condominium Association Insurance covers damages to areas that are shared in your building or complex such as lobbies, elevators, amenities like swimming pools or tennis courts, and even the exterior of the building itself. It also protects the condo association against liability costs if someone gets injured on the premises.

A condo association’s property insurance falls into one of three coverage options:

Bare walls coverage— This policy covers communal structures only, including the structural walls and basic floors of each condo unit. Everything inside those walls is up to the owner’s condominium insurance. This policy could be considered the most limited property insurance option. 

Original specs coverage— This policy covers both communal structures and individual units, but only covers the basics of the interior — think flooring, cabinets, and fixtures. Anything added, like a resident’s personal belongings, betterments, or extensions, are not included in this coverage.

All-in coverage— This is the type of policy that provides maximum coverage covering all real property by the association.

Some other types of insurance coverages used for Condo and HOA include:

• Building Coverage covers the building and things attached to it, such as fixtures, flooring and cabinets as well as any common buildings, like a clubhouse or garage.
• Backup of Sewer and Drain covers building and business personal property damaged as a result of back up of sewers or drains.
• Employee Dishonesty provides coverage for certain losses caused by a dishonest employee.
• Inflation Coverage automatically increases the amount of insurance on your buildings and association's personal property to help keep pace with inflation.
• Replacement Cost Claim Settlement provides claim payments that are based on the cost of replacing your damaged property, subject to policy conditions or provisions.
• Ordinance and Law covers the increased cost to upgrade the building due to enforcement of municipal laws and ordinances.

It’s also advisable to include an umbrella policy to top up a Condo Owners Association's liability policy. Umbrella policies add extra protection and are triggered once the underlying coverage has been exhausted.

In Florida’s condo associations 

the law requires that: 

COA property insurance is equal to the replacement cost of the property (a number determined every 36 months by an independent appraisal). COAs can also provide adequate property insurance through a self-insurance fund.

Property insurance must cover “all portions of the condominium property as originally installed or replacement of like kind and quality, in accordance with the original plans and specifications.” It must also cover “all alterations or additions made to the condominium property.”

Property insurance cannot include “personal property within the unit or limited common elements.” This can include floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, and more.

At Garzor Insurance we care about your business. Our experienced professionals are dedicated to providing commercial insurance in Florida as well as Texas, and now many other states across the U.S. If you also have questions about Condo Owners Association or other commercial insurance products, please do not hesitate to visit us online at Garzor Insurance, or you may want to call us directly at (321) 206-8035.

Mariana Morante

Licensed Insurance Agent

Main Office - Orlando, Fl

Office Number: 321-206-8035 Ext. 413

Direct Number: (305) 900-4339