Short answer: A Florida condominium association must carry adequate property insurance on the building, with replacement cost set by an independent appraisal or update at least once every 3 years, and must carry fidelity coverage for people who control or disburse association funds (§718.111(11)). Most boards also carry directors and officers, general liability, flood and umbrella coverage. Nymble Insurance places condo association master policies across Florida. Call (813) 291-3484.
What the master policy must cover
Section 718.111(11) requires adequate property insurance on the condominium property, with replacement cost determined by an independent insurance appraisal or update at least once every 3 years. The association may pick hurricane deductibles consistent with industry standards, and the statute sets out how deductibles and uninsured losses are handled. It also lists the interior items unit owners insure themselves; see unit owner HO-6.
Coverages a Florida board should review
- Property and wind, including the hurricane deductible and how it is funded.
- Flood for the building, especially in special flood hazard areas.
- General liability for common areas, pools and docks.
- Directors and officers for board decisions.
- Fidelity / crime, which §718.111(11) requires for persons who control or disburse funds.
- Umbrella above liability and auto. See commercial umbrella.
- Workers' comp and equipment breakdown where the association has staff or elevators and boilers.
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Get Your Free Review →Milestone inspections and SIRS
Buildings three stories or more need a milestone inspection, generally by December 31 of the year they reach 30 years, or 25 if the local building official requires it (§553.899). Associations must complete a Structural Integrity Reserve Study covering roof, structure, fireproofing, plumbing, electrical, waterproofing, windows and exterior doors, and fund those reserves (§718.112). Underwriters routinely ask for these reports, so having them ready speeds renewals.
Citizens and the private market
Citizens offers commercial residential policies for condo associations when the private market will not write them (§627.351). An independent agency can market the risk to private and surplus lines carriers first.
Associations with short-term rentals, vacancies or construction
Rental-heavy buildings, buildings with many vacant units and buildings in major restoration each need underwriting disclosure. New projects need builders risk until turnover.
Condo Associations Insurance FAQ
How often must a Florida condo association update its replacement cost appraisal?
Is fidelity insurance required for Florida condo associations?
Which Florida condo buildings need a milestone inspection?
Can Nymble place a condo association master policy?
Sources
- Fla. Stat. §718.111 (condo association powers, insurance)
- Fla. Stat. §718.112 (bylaws, reserves, SIRS)
- Fla. Stat. §553.899 (milestone inspections)
- Fla. Stat. §627.351 (Citizens Property Insurance Corporation)
- FEMA National Flood Insurance Program
Educational information only, not legal advice or a coverage guarantee. Coverage depends on the policy issued. Nymble Insurance, licensed Florida independent agency, license L131669, (813) 291-3484.