FAQ:  Condo

(See your policy for specific limitations)


Do I need a condominium policy?
Even though your condo association likely carries a master insurance policy to cover the building, you will need a separate policy to protect your individual interests. Some of these items include your personal liability, personal property you own and the units interior cost to rebuild.

Why do I need building coverage on the inside of my condo?
Your condo association’s master policy no longer provides coverage for the interior of your units building items. By Florida law, the unit owner is now responsible to insure the cost of rebuilding their unit. Some associations require proof of coverage.

What is Coinsurance?
Coinsurance is a risk sharing strategy between you and your insurance company.

Let’s say that your condo unit is 1000 sq. ft. and the estimated cost to rebuild it is $65.00 per sq. ft.

A simple calculation tells us $65,000 is needed for Coverage-A Dwelling.

However you decide to purchase $32,500 or 50% of amount needed ($65,000) to avoid coinsurance.

And you have a covered loss in the amount of $10,000.

If the amount you are insured to is 50% of replacement cost, you will receive 50% of the claim amount minus your deductible.

How can I avoid a coinsurance problem at the time of a claim?
Insure your condo coverage A Dwelling (interior building items) to 100% replacement cost.

What does the condo Special Dwelling Coverage Endorsement do?
This endorsement is used to upgrade a condo policy from named peril to all risk which includes water damage.

Can I insure a property in the name of a Corporation, LLC, LTD or Trust?
Yes, however you may need a separate liability policy.

What is the difference between an Additional Interest and an Additional Insured?
Liability coverage is not provided to an additional Interest, such as a mortgagee, however three individuals owning a property would qualify as additional insured’s.

What coverage do I need to add if I own a condo and decide to rent it out?
Add the Rented to Others endorsement to your policy. You may also want to purchase a Liability Umbrella policy.