Owners of condominiums need to purchase coverage. In fact, condo insurance in Florida can be quite tricky. While technically a policy is not required by law, your condo association will require it. Knowing the perfect amount of coverage you need can be confusing. As you may already know, multi-family units and single family units will have different needs. Condo owners need to understand that there may be a need to have two different types of policies to protect their major financial investment.
The first policy is usually provided by your condominium association. This will consist of covering the building exterior such as the walkways, the lawns, and other areas located on the grounds. The second policy is purchased by you, the owner. This second policy will strictly protect your personal belongings, the inside of your condo such as the walls, floor, cabinets, and personal liability.
At the time of purchasing your condo, you will need to show proof of insurance. Therefore you will need to do your research beforehand. Condo insurance in FL is for sure not a one size fits all policy. Every condo owner has different coverage needs.
Do I need a condo policy in Florida?
FL condo owners used to be required by law to purchase condo coverage. However, that is no longer the case. Your condo association may require you to purchase a policy, show proof that your policy meets their minimum limits, may have to purchase coverage from a particular company.
Before purchasing a policy, you will need to understand what’s covered by your policy. Knowing the difference between a condo and homeowners policy is definitely the first step you need to take. The condo policy is known as HO-6 and can be referred to as walls in coverage. Here is what you can expect to be covered by your condo insurance in Florida policy:
- First, as per usual your personal belongings are covered. You will definitely want your personal belongings to be covered in the event they are damaged or stolen. Understand that replacement cost coverage will replace your belongings at current market value minus depreciation.
- Unlike a homeowners policy, your condo policy will cover your interior structure. Your interior structure includes the inner walls, flooring, countertops, and fixtures.
- Liability coverage is also included. If a guest is hurt inside of your unit or if their belongings are damaged.
- Loss of use coverage is included in your policy as well. This will cover you if your home suddenly becomes uninhabitable due to a covered loss. Your policy will able to provide you with additional living expenses.
What happens if I don’t purchase coverage?
If you do not purchase Florida condo insurance, then your association can purchase the proper amount of coverage and then charge you for the expenses. There really is no way out of not purchasing any coverage. You may even have your condo unit foreclosed if you do not purchase the proper coverage.
How much is condo coverage in Florida?
Condo insurance in FL can greatly vary depending on where your condo is located, its size, the structure of the building, and other features. You may be able to save on your policy by qualifying for safety discounts. All policies generally offer a discount if you have these safety features. They include deadbolt locks, smoke alarms, and burglar alarms. However, Florida discounts also include discounts for wind resistance features too.
Condo premiums will differ by insurer. They will also take in several other factors to determine your monthly rate. The average cost of condo coverage is around $900 annually.
Now that you know the ins and outs of condo insurance in Florida, you can shop for a policy that best suits your needs. Always remember to shop and compare quotes, so you can find a policy that fits your needs within your budget.