Condominium Insurance Coverage in Naples
According to a Naples public adjuster, there are often many questions when damage occurs in a condominium unit as to who is accountable to pay for the repairs. Often there is mystification over which insurance policy should pay for the damages. Damage caused by plumbing leaks or water intrusion may damage multiple units on different floors, as well as common areas owned and maintained by the Condominium Association. In addition, claims involving water leaking through windows or balconies are denied by one’s insurance company because coverage for exterior windows and doors are the responsibility of the Condominium Association and are, therefore, excluded from your unit owner coverage. There can also be plumbing losses derived from another unit creating water damage to your unit or common elements.
So, which policy should cover the damages? The Condominium Association’s policy, your unit owner’s policy, or the policy that covers a different unit if the cause originated in another unit in the building?
Frequently in these circumstances, there is a lot of finger pointing between condominium unit owners and their insurers and the Condominium Association and their insurer. The policies are often vague as to what is covered as part of the “unit” and what is covered as part of the “common elements.” Insurance carriers will endeavor to pass the liability onto each other.
When the insurance carriers start steering responsibility to the other, a public adjuster may be required to examine the insurance policies involved, as well as the Declaration of Condominium and the Bylaws to resolve which insurance company should be responsible to pay for the policyholder to fully recover from the damages.
Typically the unit owner’s policy (HO-06) includes the following statement regarding the scope of coverage:
We cover the portions of the building “which are your insurance responsibility under a corporation or association of property owner’s agreement” or declaration of condominium.
Each and every Declarations of Condominium and the Bylaws in Florida are free to define the terms “unit” and “common elements” in different ways. Thus, each claim made under a unit owner’s policy has the potential to cover different items within the unit. In contrary, any claim brought under the Condominium Association’s policy may cover different items under common areas. All depends on who has the “insuring responsibility” for the damaged item under the policy and under the Declaration of Condominium and Bylaws.
In 2008, Florida Statutes were amended in effort to deal with this confusion. However, today, unit owners and Associations are more confused than ever before. In 2008, Florida Statute §718.111.11 was amended to include requirements for what should be covered under the Association’s building policy and what should be covered under the unit owner’s policy. However, numerous discrepancies and unanswered questions remain.
Our solid advice to condominium owners suffering any type of loss: Contact a public adjuster as soon as you discover your loss to help you through the insurance maze.
D’Orsa and Associates, LLC public adjuster will sort out which insurer is responsible for specific damages as a result of the cause of loss.
We are here to help you. Free Consultation. No Recovery, No Fee! (877) 742-3587
Reference is made to Florida Statute 718