New Florida condo law is about to take effect
In a situation that might qualify as a “be careful what you wish for” tale, several new Florida laws related to condominium insurance policies are slated to go into effect Jan. 1. The problem is they are essentially unworkable as currently written — leaving many condo owners, community associations and insurance agents in a state of confusion about how to proceed.
At issue is a bill passed during the last legislative session, one which was pushed in large part by condominium associations looking to deal with a particular problem: how to deal with condo units that became damaged or destroyed inside, but whose owners lacked homeowner’s insurance policies to fix them.
Condominium associations’ insurance generally only covers reconstructing things to the bare walls. Everything beyond that, including carpets, cabinets, light fixtures and the like, are the responsibility of the unit owner to cover with his or her own insurance policy, if they so choose. Some condo owners simply forego that expense, if they do not find it economically viable. Associations can require such coverage in their condominium documents, but they do not have to.