Coconut Grove Condo Owners – Read This!
November 20th, 2008 categories: Condos
Effective January 1, 2009, condo owners must present proof of hazard insurance.
History
In 2004, the Florida Condominium Act stated that condominium owners “shall” have hazard insurance on their individual units. This hazard insurance was in addition to the hazard insurance that covered the common area of a building paid for by the condo association.
The problem with the law was that it did not specify (1) Whether an owner could self insure, (2) A specific amount that was required, (3) Whether the association had the right to enforce the requirement and (4) Remedies or penalties of non-enforcement.
After several hurricanes it became apparent that people did not have the required coverage because many owners were unable to bring their damaged units up to habitable condition. This resulted in abandoned units and distressed sales contributing to the overall value of the condominium.
Now
The Florida Legislature has amended the law to require owners to provide proof of this insurance policy every year. Beginning January 1, 2009 if an owner fails to provide proof of hazard insurance on their unit the Condo Association may buy the insurance on their behalf and bill the cost to the condo owner. The new law also states that each policy must contain a “loss assessment” limit of at least $2,000.00.
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