10 things to know about condominium insurance
T1. The condomi
10. Many times, unit owners do not understand the interaction
between their individual policies and the master policy. One
area where this comes into play is in coverage for loss assessments.
Condo owners should understand what their obligations
are in the event of losses to common property. That way, they
can work with their insurance professional to ensure adequate
Condominium insurance coverage can be complicated and
confusing and it is best to have a licensed insurance agent assisting
you when you are looking for coverage. Your association by
laws can play an integral part in knowing what is necessary and
how much coverage you may need. Not all condo associations
are created equal and coverage requirements will vary. One size
Let a local agent who specializes in condominium insurance advise
you as the proper way to insurance your property and what coverages
will protect your investment and minimize your risk potential. We are
your local go to agency for all specialized coverages you may need.
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By Steve Papola
Centurion Insurance and Financial Services
condominium association owns and insures the outside
side structure of the
master policy agree
structure is owned a
makes up the indiv
bl f i i F
the condominium building. The condominium
agreement (bylaws) stipulates what part of the
and insured by the association and what part
individual’s unit that the unit owner is responsible
for insuring. For instance, the bylaws may stipulate the unit
owner is responsible for everything on the inside of the drywall.
2. There is no standardization of master policy language so
what the unit owner’s insurable interest is in the condominium
unit. To complicate matters, some states have enacted Condominium
Acts which supersede the master policy agreement and
stipulates insurable interests for the association and unit owners.
A unit owner should look for a policy that offers coverage for
personal property, real property/building additions and alterations,
personal liability and loss assessment.
3. Over the years, condominium owners associations have
been moving toward policies that provide less coverage for a
lower cost. This shifts more of the responsibility for loss or damage
to the unit owners and the loss assessment coverage in their
4. Reviewing the Unit Owner’s Building Property coverage
in their policy with their agent is also a good idea to assure that
individual unit owners have a clearer understanding of the coverage
they may need in the event of a loss.
5. The number of community associations in the U.S., including
homeowners associations, condo communities and cooperatives,
grew from approximately 222,500 in 2000 to 333,600 in
2014, with condo communities representing up to 45%.
6. Some 66.7 million people lived in common-interest communities,
including homeowners’ associations, condo communities
and cooperatives, in the U.S. in 2014. States with the most
associations are Florida (47,100), California (43,300).
7. In Florida, Citizens Property Insurance Corp. plays a critical
role insuring condos, most notably older units concentrated
close to the water, but Florida’s private insurance market is increasingly
8. Citizens Property in Florida continues to propose modest
rate increases for condo unit-owners (HO-6) policies under a
legislative mandate capping annual increases at 10%. This is due
to historical inadequacies that need to be addressed for several
years to come.
9. Company inspections continue to be an issue for insureds
and brokers. And some carriers no longer write condo buildings
that have bars or restaurants because of what they perceive as
added exposure to the property or their liability.
813.682.9364 EXPO EDITION 2019 • 33