So you did your job as a director and you made sure to purchase insurance for the association. So what is actually insured? Florida Statute 718.111 says:
f) Every property insurance policy issued or renewed on or after January 1, 2009, for the purpose of protecting the condominium must provide primary coverage for:
1. All portions of the condominium property as originally installed or replacement of like kind and quality, in accordance with the original plans and specifications.
2. All alterations or additions made to the condominium property or association property pursuant to s. 718.113(2).
If all portions of the condo property as originally installed are automatically insured, then what isn’t insured?
3. The coverage must exclude all personal property within the unit or limited common elements, and floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments, including curtains, drapes, blinds, hardware, and similar window treatment components, or replacements of any of the foregoing which are located within the boundaries of the unit and serve only such unit. Such property and any insurance thereupon is the responsibility of the unit owner.
So how Does an Owner Purchase Insurance that will cover their personal property, floor and wall coverings, electrical fixtures, appliances, cabinets, countertops, drapes, blinds, etc…?
They need to contact an insurance agent and purchase what is called an HO6 policy?
Are there any other benefits to purchasing and HO6 policy?
Yes. The policy will also cover a unit owner who gets hit with a special assessment, up to $2,000.00, from their condominium as a result of a direct loss to the condominium.
Can the Association force owners to purchase an HO6 policy?
There was actually a statute that existed a few years ago that did allow for this. But it was repealed. So, an association cannot force an owner to purchase this insurance unless there is a specific requirement in the declaration of condominium.