Condo insurance is a complex beast, and many new condo owners can find themselves stumbling in the dark. Understanding the difference between association and owner policies is the most important component in finding condo coverage in Florida. Unlike a home, a condo owner does not own the entire structure, and this makes things more complicated. Many owners don’t know what coverage they need. Understanding where to find information and how to distinguish the two policies can help you work through this.
The Association Policy
Before you can determine what you need covered, you have to clearly understand what the condo association policy covers. Most commonly, the association covers damage to the building’s common areas. These areas most often include exterior walls, hallways, courtyards and facilities. Things become a little trickier when considering small gray areas. These smaller discrepancies can be found in the policy description in the association bylaws given to each resident.
The Owner Policy
Essentially the condo owner must obtain condo coverage in Florida to cover what the association does not. However, these pieces may not be entirely obvious. Owners are definitely responsible for the contents in their home. These are items like heirlooms, furniture, electronics, clothing and jewelry. However, owners are also responsible for the structural components of their unit. This includes internal walls, paint, carpet, flooring, cabinets and bath fixtures. Understanding these distinctions can help you determine what coverage you need.