Condominium Insurance Alert - Buyer Be Aware

February 02, 2004 - Information Provided by Terry Taylor Insurance

Condominium Insurance - Alert

The declaration of condominium (“condo docs") no longer dictates the insuring responsibilities for the condominium association or the unit owner. This applies to every condominium association across the state, regardless of the date of its declaration of condominium. This is an important recent development regarding the 2003 legislative changes to §718.111 (11), F.S. (the insurance portion of the statute). Under the insurance section, part (b) refers to the condominium associations' insuring responsibilities for the following items:

1. All portions of the condominium property located outside the units;

2. The condominium property located inside the units as such property was initially installed, or replacements of like kind and quality and in accordance with the original plans and specifications or, if the original plans and specifications are not available, as they existed at the time the unit was initially' conveyed; and

3. All portions of the condominium property for which the declaration of condominium requires coverage by the association.

The terms "condominium property, "building," "improvements," insurable improvements," "common elements," "association property," or any other term found in the declaration of condominium referring to the insuring responsibilities of the condominium association are prohibited by Florida Statutes to include any of the following:

• Floor

• Wall

• Ceiling Coverings

• Electrical Fixtures

• Appliances

• Air Conditioning or Heating Equipment

• Water Heaters

• Water Filters

• Built-in Cabinets and Countertops

• Window Treatments (curtains, drapes, blinds, hardwar, and similar windo treatment components

• Replacements of any of the foregoing which are located within boundries of a unit and serve only one unit

• All air compressors that service only an individual unit, whether or not located within the unit boundaries

Therefore, the above items are the responsibility of the unit owner to purchase condominium insurance. Again, the declaration of condominium no longer dictates the insuring responsibilities for the condominium association or the unit owner. This applies to all new and renewal policies issued on or after January 1, 2004. The Florida Statutes now dictate the insuring responsibilities for the condominium association and the unit owner.

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