Florida Condo Reform Bill – Vetoed By Charlie Crist

    On June 1^st, 2009, Charlie Crist vetoed house Florida House Bill 714, The Condo Reform Bill. The bill is largely criticized for the financial burden it places on associations during a time of great economic strife in requiring that Condo Associations retrofit their buildings with fire sprinklers by 2014. But, this article is to explain a little more about what Florida House Bill 714 means for Florida families and Florida Condominium Association boards of directors. The Florida Condo Reform bill keeps the requirement in place for condo unit owners to purchase insurance on their units and to name the condominium associations as an additional insured on the policy. Requirements for the condo unit owners also include having at least a $2,000 limit of liability for loss assessments.

    ALC Risk Solutions writes condo-unit insurance policies, also called HO6 policies with many different insurance companies. HO6 or Condo Insurance policies are very similar to homeowner's insurance policies for single family homes which are called, HO3 policies. The first section of a condo policy is Coverage A, or dwelling coverage. The Condominium Association is responsible for purchasing property insurance to cover the outside shell of the association, the unit owners are responsible for covering everything inside their units. The dwelling coverage is the cost for rebuilding the inside structure of the unit. Coverage B is other structures, for many condo unit owners this section can be left at $0, unless there are other structures, not attached to the unit, owned by the condo unit owner, like a shed, or garage. Coverage C covers the unit owner's personal property. The personal property includes your furniture, clothes and your other possessions. Coverage D, called Loss of Use, covers the unit owners expenses incurred when they cannot occupy their unit due to a insured damage or peril. Coverage E is the unit owner's personal liability coverage. This coverage is very important as it will protect the unit owner when many lawsuits are brought against that person or their family on their property and off. There are limitations on this liability coverage, and they vary for insurance company to insurance company. Coverage F is the Medical Payments. This pays for medical costs occurred on the individual's property without a lawsuit being brought. Another very important coverage mentioned in Florida House Bill 714 is Loss Assessment coverage. The Condo Reform bill requires at least $2,000. This covers the condo unit owner for condo association assessments due to covered insured perils.

    The Florida Condiminium Reform Bill veto by Charlie Crist also has very important implications for the Condominium Associations. Besides the financial impact of retrofitting buildings with fire sprinkler systems, it also places many new legal liabilities on the associations. At ALC Risk Solutions, besides being able to provide HO6, Condo Unit Owners Insurance policies for your residents, we can also provide your Master Condominium Association Policies. A very important policy for the board of directors at condo associations, is the Directors and Officers Liability Insurance, also called, D&O. This covers the officers of the board for their actions and without this coverage, they could be held personally liable for their actions. In addition to making sure you have the best coverage and price for your D&O insurance, ALC Risk Solutions can make sure you have the lowest premium and best coverage for your Property insurance with windstorm coverage, Flood Insurance, General Liability, Boiler and Machinery Insurance, workers compensation and when necessary, automobile insurance. For more information and to contact us for a quote call Andrew Cohn at (786) 382-6833, email at acohn@alcrisk.com, or you can visit www.alcrisk.com