When it comes to community association insurance, Florida condo association insurance is a key aspect of that equation. While there are always going to be insurance providers that claim to offer their clients with "cheaper" insurance policies, they do not always provide the necessary coverage. That's why it behooves potential clients to do the proper research.

According to the laws that have been put into place, any condo association in Florida must be willing to provide the proper amount of insurance. Receiving quotes is crucial. Experts recommend taking the time to meet with an independent insurance appraisal firm to find out more about potential costs. These meetings let the client know exactly how much protection they are going to need.

The appraisal lets the client know more about the replacement cost of the insured property and offers them the background needed to make a prudent decision. These costs are determined by establishing the initial costs of the property plus the costs of repair or replacement. Depreciation is not deducted in these instances.

The determination of these values is considered by the insurance board, who will also provide clients with deductibles that are designed to reduce premiums. In order for these deductibles to remain legal, they must remain in lockstep with the prevailing practices and industry standards.

Comparisons are made with other Florida communities of similar sizes. The age and the construction are also considered. The entire area where the condominium is located is examined. If there are any reserve accounts or available funds, the deductibles can based on these.

Any association that is looking to remain protected will have to make sure that they are obtaining replacement cost coverage. This is required by law in the state of Florida. A policy that is centered around actual cash value does not allow a condo association to remain in compliance. The maintenance level and age of the condo play a key role in obtaining a quote.

After all, this is how appropriate coverage is insured. The agent that the condo association chooses should have a strong understanding of the client's needs. They should also have a strong track record when it comes to procuring various forms of condo association insurance. Those who allow themselves to believe that all agents are aware of their needs are placing themselves in a difficult position.

The best agents will ask for the necessary documentation, have a strong knowledge of any and all bylaws and require their client to provide any relevant information. Some policies may also require a greater level of liability for directors and officers. The bottom line: a Florida condo association must be sure to do their due diligence when hiring an insurance firm or agent. This allows the condo association to enjoy the peace of mind that comes with knowing that they are in full compliance with Florida law.

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