There is a new Florida law and it impacts your condominium insurance policy!
Recently, the Florida legislature passed House Bill 601, which applies to all condominium insurance policies issued or renewed after January 1, 2009. If you have condo insurance, this will affect your policy. If you do NOT have condo insurance, take note! You will want to get it on your own (to save money) or your condo association will have the ability to "force place" insurance, just like a lienholder on your car has the ability to force placement on your car, if you do not have insurance.
Increased Loss Assessment: The new law requires that your condominium policy provide special loss assessments coverage of at least $2,000. So, if your current policy has a limit of liability of less than $2,000 for Coverage G, Loss Assessments, most companies will automatically increase your limit to $2,000 effective on January 1, 2009, at no additional cost to you.
Condominium Association Treated as Named Insured/Loss Payee: In addition, in accordance with the new law, your condominium association will be treated as a named insured and loss payee for covered reconstruction costs related to any condominium property that the unit owner is required to insure. This change does not increase your policy's coverage. It simply means that the condominium association will be named, in addition to you, on any loss payments made under Coverage A, Building Property Protection, of your policy. This change does not provide the condominium association with the right to cancel your policy. They are listed as an Interested Party on your insurance in order to coordinate coverage in the event of a loss in which both parties are responsible.
Providing Evidence of Hazard and Liability Coverage: The new law also requires condominium unit owners to provide proof of hazard and liability insurance to the association. You only have to provide this evidence once a year. Your Policy Declarations and this letter should suffice as adequate proof of these coverages and your compliance with the new law. If you have any questions about how this will affect your insurance policy, or to have your condo association listed on your policy, please call your insurance agency.