The biggest news story
of the year unfortunately was the collapse of the Champlain
Towers in Surfside. And as a result, there is going to be
some big changes to the laws regarding reserves and
inspections. But attorney Eric Glazer says that under
Florida law, there is no absolute requirement that your
condominium association insure the building(s). Sounds crazy
right? Yet, here is what the law actually says:
“An association
controlled by unit owners operating as a residential
condominium shall use its best efforts to obtain and
maintain adequate property insurance to protect the
association, the association property, the common elements,
and the condominium property that must be insured by the
association pursuant to this subsection.”
Think for a second if Champlain Towers was not insured? The
very thought of it sounds impossible, but it isn’t. But
wait…..it gets worse. Even if the property is insured the
statute says:
“The coverage must exclude all personal property within the
unit or limited common elements, and floor, wall, and
ceiling coverings, electrical fixtures, appliances, water
heaters, water filters, built-in cabinets and countertops,
and window treatments, including curtains, drapes, blinds,
hardware, and similar window treatment components, or
replacements of any of the foregoing which are located
within the boundaries of the unit and serve only such unit.
Such property and any insurance thereupon is the
responsibility of the unit owner.” |
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According to Glazer,
“If your condominium property is insured, but you did not
purchase a separate HO-6 policy for your unit. All you get
back is your four walls. That’s right, basically a shell.
Flood insurance is also not required.”
Watch townhall on the topic here.