According to the definition provided by the United States Census Bureau, a condominium is a form of homeownership in which the units (either apartments or houses) are owned by individuals, but common areas are owned as part of a collective. Condos have become very popular in Florida. Census data indicates that approximately 15 percent of all housing units within the state are condos. This puts Florida’s condo ownership rate at three times the national average, and second only to that of Hawaii. Like any home, your condo may at some point suffer serious property damage. Property insurance claims involving condo damage can bring many unique issues. Here, we explore one of those issues: Common loss assessment coverage.
What is Common Loss Assessment Coverage?
Common loss assessment coverage is an insurance policy that provides protection for condo owners against liability related to a common area loss. This could include damage to the outer part of the building itself, damage to a common area, or a personal injury claim being brought against the condo association. Having this type of coverage will ensure that you do not have to pay out of pocket for common area damage.
Doesn’t the Condominium Master Policy Already Cover Common Area Losses?
The answer to this question is both yes and no. Through your monthly condo fees, you are likely paying for a master insurance policy that does provide insurance protection for common area damage. However, in many cases, the master insurance policy will include strict policy limits or other exclusions. Additionally, this coverage may not cover every type of damage. If the condo association suffers damaged beyond the policy limits, or damage that is not covered at all, then you and joint-owners will likely be assessed a fee to make up for the difference.
Florida Minimum Loss Assessment Requirements
Chapter 627 of the Florida Insurance Code requires that all residential condominium insurance policies include a minimum of at least $2,000 of common area loss assessment coverage. Additionally, this coverage is limited to a maximum deductible of only $250. Is $2,000 of coverage enough for you? It might be. Many Florida condo owners want to know if they should purchase additional loss assessment coverage beyond what is provided within their insurance coverage. Ultimately, the answer to the questions depends entirely on your individual circumstances. To ensure that you are adequately protected, it is imperative that you review your condo association’s master insurance policy. You should assess whether or not there are gaps in the coverage that may need to be filled with a common loss assessment policy.
Do You Need Legal Assistance?
At Geyer Fuxa Tyler, our property insurance dispute attorneys have extensive experience handling cases involving condo damage and condo-related insurance. If you are a condo owner in Broward County who has suffered any type of major property damage, and you are having trouble obtaining the fair compensation that you rightfully deserve, we can help. Please do not hesitate to call our Sunrise, Florida office today at (954) 990-5251 to request your free case evaluation.
Resources:
census.gov/prod/1/statbrief/sb94_11.pdf
leg.state.fl.us/Statutes/index.cfm?App_mode=Display_Statute&Search_String=&URL=0600-0699/0627/Sections/0627.714.html
