LETTER FROM THE EDITOR

If you were unable to attend the meeting of May 18, 2010 that concerned personal and PP insurance responsibilities, you might find the following notes of interest.



Chuck Bushong, CPCU
 
Individual unit insurance
 
By state law (FL Condominium Act, Chapter 718 F.S.) each unit owner must have hazard and liability insurance. 

Self-insurance is no insurance!

A condominium association may force-place insurance for any owner that has no insurance.

There are no specified amounts of coverage for personal property but should be based
on the owner’s valuation of the property covered.

You should have a personal liability umbrella of at least one-million dollars.
Consider flood insurance if you are located lower in the building (below the fifth floor).
 
There is special form coverage…WIND-DRIVEN RAIN COVERAGE.  This is highly desirable for ocean-front condominiums with 28 year-old windows and doors!  Faye, the last significant storm in 2008 caused water damage in many units because of four days of driving rain.
 
To collect on insurance there must be an insurable event, a loss, and a timely filed claim.
 
If negligence is involved, the courts must make that determination.
 
Don’t file a claim for minimal loss. i.e. a few hundred dollars. 
 
Each condo owner’s policy should have loss assessment coverage of at least $2,000…or more if obtainable.
 
The F.S. 718.111(11) governs responsibility for coverage and protection; the insurance contract is next in importance.  Individual condominium documents usually don’t matter except in catastrophic losses.
 
Make sure the insured is named correctly. This is important where a trust or some other entity is the titled owner. There must be an insurable interest in the property that is being insured.