Condo Association Master Insurance Policy

A cornerstone of condo association insurance is the master insurance policy. This policy typically covers the condominium building's structure, common areas, and shared amenities. However, the coverage specifics can vary widely depending on the type of master policy in place. There are typically two types of master policies:

Bare Walls-In Policy: This policy typically covers the building's structure only, leaving individual unit owners responsible for insuring their unit's interior fixtures, appliances, and personal belongings.

All-In Policy: Also known as a single-entity policy, this comprehensive policy extends coverage to the building's structure and fixtures within individual units up to a certain standard. However, unit owners may need additional coverage to protect their personal belongings and upgrades beyond the master policy's limits.

Florida Statutory Requirements

Florida law, specifically Chapter 718 of the Florida Statutes, outlines insurance requirements for condominium associations. Some key provisions include:

Minimum Coverage Requirements: Condo associations must carry insurance coverage for the condominium property, including property and casualty insurance covering all portions of the condominium property as originally installed or replaced with like-kind and quality materials per the original plans and specifications.

Hurricane Deductibles: Florida law mandates that condo associations disclose the hurricane deductible amount in their insurance policies. This helps unit owners understand their potential financial liability in hurricane-related damage.

Notice Requirements: Condo associations must notify unit owners of any material alterations or additions to the master policy. This ensures transparency and allows unit owners to assess their insurance needs accordingly.

What is Condo Insurance?

Dwelling Coverage: This component protects the interior structure of your condo unit, including walls, ceilings, floors, and fixtures, from covered perils such as fire, vandalism, and water damage. In the event of damage, it typically covers repairs or reconstruction of your unit.

Personal Property Coverage: Personal property coverage safeguards your belongings within the condo, such as furniture, electronics, clothing, and appliances. If your possessions are damaged or stolen due to covered events like theft or hurricanes, this coverage helps reimburse you for the cost of repair or replacement.

Liability Coverage: Liability coverage is crucial for protecting you financially in case someone is injured while visiting your condo unit. It helps cover legal expenses, medical bills, and damages if you're found responsible for causing bodily injury or property damage to others.

Additional Living Expenses (ALE): If your condo becomes uninhabitable due to a covered loss, ALE coverage can help pay for temporary living expenses, such as hotel bills or meals, while your unit is being repaired.

Additional Coverages: Depending on the insurance provider and policy specifics, additional coverages may be available to enhance protection. These may include coverage for improvements and betterments made to your unit, loss assessment coverage for shared building repairs or lawsuits, and umbrella liability coverage for extended liability protection.

When purchasing condo insurance in Florida, it's essential to consider several factors to ensure adequate coverage:

Building Master Policy: Condo associations typically carry a master insurance policy that covers common areas, building exteriors, and shared amenities. Understanding the association's master policy is crucial for determining the extent of coverage needed for your unit.

Hurricane and Flood Insurance: Given Florida's susceptibility to hurricanes and floods, assessing whether your condo insurance policy includes adequate coverage for these perils is essential. In some cases, additional insurance may be necessary to fill gaps in protection.

Personalization and Endorsements: Work with your insurance agent to tailor your condo insurance policy to your needs and preferences. To ensure comprehensive coverage, consider adding endorsements or riders for valuable items, such as jewelry or collectibles.

What Is Not Covered by Condo Insurance?

While condo insurance offers comprehensive coverage, there are certain events and items typically not covered:

Building Structure: The exterior of the building, the roof, and common areas are usually covered by the condo association's master policy, not your condo insurance policy.

Flood Damage: Condo insurance policies typically do not cover damage caused by floods. You'll need a separate flood insurance policy for this.

Earthquake Damage: Standard condo insurance policies usually do not cover earthquake damage. If you live in an area prone to earthquakes, you may need to purchase additional coverage.

Wear and Tear: Condo insurance is designed to cover sudden and accidental damage, not damage caused by normal wear and tear.

Florida-Specific Considerations

Due to Florida's geography and climate, condo insurance policies may have some unique considerations. For example, hurricane insurance may be necessary, as Florida is prone to hurricanes. Reviewing your policy carefully and considering additional coverage options based on your location and condo association's requirements is essential.

Has Your Home Insurance Company Denied Or Undervalued Your Property Damage Claim In Florida?

If your insurance company is dragging its feet regarding your property damage claim, you should speak with an experienced insurance claim lawyer as soon as possible. Please contact us online or call our Florida law office at 800.451.6786 to schedule your free consultation. We help Florida residents like you fight the big insurance companies who fail to abide by their policies. Remember, we work on a contingent basis, meaning you don't pay us anything until we win your case. 

K.C. Williams III
Managing Partner who has spent his entire career representing Florida insurance and personal injury claims.