A Guide To Florida Homeowners Association Insurance
When it comes to Florida homeowners association insurance, it can be difficult for a potential client to discern between all of the different options. Common property must remain protected at all times. If structures are damaged or losses occur, these financial responsibilities must be taken care of.
Florida HOA insurance is an element of community association insurance. Those who are searching for coverage that is truly comprehensive will have a number of factors to consider when they are seeking quotes. Florida insurance statutes offer further insight into these requirements and should be studied before a consultation meeting is scheduled.
Any insurer that meets with a Florida client will direct them to the coverage that allows them to remain in lockstep with these statewide regulations. Don't make the mistake of expecting the insurer to explain the ins and outs of these laws. While they can certainly guide their clients in the right direction, they are not going to be able to provide a full understanding.
The client is provided with the proper guidelines and from there, they will have to make their own decision. Insurers also recommend taking the time to bring these documents when receiving a quote, so that the client is able to understand the ins and outs of various claims.
For example, this insurance may provide the client with basic coverage and force them to pay for major damages out of pocket. If someone is looking to make their unit into their own and they are looking for coverage that ensures long term protection, the homeowners insurance costs are much higher. Speaking to a professional who has a great deal of experience with associations of this nature is key.
Determining the precise amount of homeowners association insurance needed is not as easy as it looks. It all starts by assessing the major costs. Fire damage and other weather related damages must be considered. From there, the client will need to consider long term coverage that is designed to offer upgrades for buildings that become damaged.
Diminution in value coverage and building code upgrade coverage are topics that need to be addressed. The average insurance policy is not going to offer coverage for these issues and demolition costs must also be considered. Every company is going to have different policies to offer and a client must take the time to meet with various providers, so that they can learn what will be best for their needs.
Every client is going to have their own specific concerns that need to be addressed. By taking the time to study the Florida statutes that affect this decision and meet with various insurance providers, clients can avoid onerous costs that will hamstring them over the long term.
Common Types of Homeowners Association Insurance
Insurance is critical for individual homeowners. It is equally as important for homeowners associations and condo associations. Insurance protects the interests of both homeowners and the HOA management team. Having the right policy will ensure that you have protection from the unexpected.
A basic homeowners association insurance package should include:
- Workers Compensation Insurance: If you employ more than two full time employees for maintenance and other work, you will need a workers comp insurance package. This covers individuals if they suffer accidents and injuries on the job. This is a state requirement. Operating without a policy will expose your HOA to unnecessary and severe risk.
- Property Insurance: This is the most critical form of insurance required by your HOA. It is similar to residential policies and commercial property insurance. Even the smallest HOA needs property homeowners association insurance. Individual homeowners will be protected by their own policies. However, structures and property owned by the HOA will need to be covered separately. This could include clubhouses, pool areas, playgrounds, stores, or anything else that is on premises.In a condominium situation, property insurance will cover exteriors and shared spaces that aren’t the property of individual unit owners.
- Fidelity Insurance: No HOA organization is completely immune to theft and fraud. Fidelity insurance will provide coverage for fraud and theft committed by employees, members of the association, and third parties.
- Liability Insurance: General liability insurance will protect the organization in case claims are made for incidents that occur on HOA property. This includes a shared building, community amenities, walkways etc. You can take every effort to ensure a safe community. Liability insurance is an extra safety net that will provide you with financial support should something go wrong.
- Directors Liability Insurance: Directors and officers will need protection when acting as representatives for the HOA. This type of insurance will ensure that you can cover legal fees if a claim is made against one of your officials.
You can combine unique policies under a single package when you work with the experts at Moran Insurance. We are a licensed independent agent that will work to find the lowest possible rates without compromising on the coverage that you need.