New Florida Condo Law Changes Insurance Requirements for Associations and Unit Owners Effective July 1, 2010

Date Published: 06-09-2010


Signed into law by Florida Governor Charlie Crist on June 1, 2010, Senate Bill 1196 by Senator Mike Fasano relating to Community Associations makes several changes to insurance requirements for condominium associations and condominium unit owners.

The bill repeals the requirement that unit owners maintain property insurance coverage, as well as the requirement that the condominium association be an additional named insured on the policies issued to unit owners. It further requires loss assessment coverage of $2,000 for policies issued or renewed on, or after July 1, 2010.  A deductible of no more than $250 is to be applied per loss. However, if a deductible applies to another property claim to the unit owner resulting from the same direct loss, then no deductible will apply to the loss assessment coverage.

The bill also corrects a "glitch" in the law by replacing the terms "hazard" and "casualty" with the term "property."

In 2008, the Florida Legislature had passed a comprehensive condominium bill that amended the insurance requirements for condominium associations and unit owners; however, this was vetoed by Governor Crist.

SB 1196 revised some of the changes made in the 2008 legislation.

Under provisions of the 2008 legislation, all condominium unit owner's policies would have been required to include a $2,000 loss assessment (increased from $1,000) without any deductible.  SB 1196 maintains the $2,000 coverage and authorizes a deductible up to $250.

The changes in 2008 also would have required an association to be a named insured and loss payee on policies issued to unit owners.  Because this would have added an additional burden for both insurance companies and policyholders, SB 1196 removed this requirement.

Other aspects of the 2008 legislation revised by SB 1196 include the removal of insurance-related terms such as "hazard" and "casualty" that were used in ways that are not applicable or customary.  These terms were replaced with the word "property."

SB 1196 becomes effective on July 1, 2010.

To view complete information on SB 1196, click here.

Should you have any questions or comments, please contact Colodny, Fass, Talenfeld, Karlinsky & Abate.


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