Condo Master Insurance Policy Is Not Optional

Section 718.111(11), Florida Statutes requires all unit-owner controlled condominium associations to use 'best efforts' to obtain and maintain adequate insurance.

There have been many debates over the years regarding insurance coverage for condominium associations and the individual unit owners. Some attorneys and industry representatives take the position that owner insurance (insurance for the contents of the unit and the portions of the unit not insured by the master policy) has been required by law for years, others contend that the law does not require individual coverage at all. Debates concentrating on the proper scope and amount of coverage for the association pursuant to the master policy are likely to continue, regardless of the pending changes to the Condominium Act.

The obligation to obtain master coverage (a policy issued to the association) for a multi-family building is not subject to debate. Even though money is tight, the economy is in trouble and many owners are faced with hard times, there are certain obligations that cannot be ignored. The tragedy faced by the unfortunate owners of the condominium building that burnt down in Broward County, Florida last week is made exponentially worse by the fact there is no insurance coverage.

Mortgage payments and property taxes do not vanish into thin air when the building burns down. Will these owners have the funds to re-build? Do they have any recourse? Probably not, says Gary Poliakoff. What about the impact on the neighboring condominiums? Living next to a partially demolished building is not likely to be pleasant or have a positive impact on property values.


Condominium directors, officers and unit owners - take advantage of the educational opportunities offered by various organizations to learn about the realities of condominium living and ownership. Educational sessions offered by CAI are generally free to community leaders. While you may not have the ability to prevent a fire, you can prevent this situation from happening to you by understanding the responsibilities of ownership and association operations.

Source: http://www.floridacondohoalawblog.com/admin/trackback/202042