Florida Condo Owners Required to Buy Property Insurance by January, 2009
Orlando, FL (PRWEB) November 6, 2008 - Most condo associations have a master policy insuring all the property and common areas that are collectively owned by the condo unit owners. These policies usually cover the external structure of each condo unit, but leave each owner responsible for the interior (every thing from the dry wall forward). And, according to Randy Walters, vice president of Candor Insurance Group, Florida condo property managers are gearing up to comply with Florida House Bill 601 before the end of this year.
Beginning in January, 2009, Florida condo property managers will be required to verify that unit owners have a proper policy in place which must include a "Loss Assessment" limit of at least $2,000 and list the association as an additional named insured. The clincher is that if this coverage is not in existence, the association may purchase an insurance policy on behalf of, and at the cost of, the unit owner. Condo owner policies typically cost around $400 per year for $50,000 of property and $100,000 of liability coverage.
For some condo owners the change in the law may be of little consequence because they already carry the appropriate policy at the appropriate limits. However, for those owners that were already struggling with the increased assessments in 2006 to cover the tripling of condominium master policy premiums, this is just one more cost to bear. "Although the additional expense may be burdensome in the short run, it is definitely the right thing to do in the long run," says Walters. And for many condo owners, the new law will help avoid confusion about proper coverage for their dwelling.
Since mortgage lenders only require a condo association master policy to be in place that is purchased and paid for by the association, some condo owners have had a false understanding that if their unit was destroyed in a fire that the master policy would pay to rebuild their unit, including the interior. "With the new law, this gap in coverage is now being met, and that is a good thing," adds Walters.
About Candor Insurance Group:
Candor Insurance Group is a division of AgelessCare, LLC, a licensed general insurance agency serving 10 states. Product offerings include home, auto, health, life and business liability insurance. For more information, visit http://www.CandorIG.com.
Media Contact:
Randall Walters, (407) 622-5489, ext 2818
rwalters @ candorig.com
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