Can Florida Condo Insurance Exclude Water Damage?
In Florida, the lowest-lying state in the US, surrounded on three sides by the sea and frequently battered by tropical storms and hurricanes, water-related damage is a common occurrence for many residents. For this reason, having adequate condo insurance is crucial to protect against potential losses.
Condo owners find this complicated. Unlike homeowners, they do not own the entirety of the building in which they reside, and unlike renters, they are only responsible for their personal property.
Below, we’ll answer this critical question — explaining everything condo owners need to know about water-related damages in the Sunshine State.
Does Insurance for Condos Exclude Water Damage?
In short, no. However, like all legal agreements, the specifics are significantly more complicated. Like homeowners’ insurance, it protects your home against fires, lightning, windstorms, and water-related damage.
The difficulty arises in determining where your condo coverage ends and your condominium Homeowners Association’s (HOA) master policy begins.
Your condo policy is generally specific to your unit’s interior, including built-in appliances, personal property, liability claims, and additional living expenses if your unit is rendered uninhabitable. In contrast, the HOA master policy covers the overall building structure and common areas like the lobby or gym.
In this manner, the two insurance policies complement each other — covering areas where one provides protection, the other, such as condo insurance coverage, fills in the gaps.
That’s not to say in certain circumstances, HOA master policies may extend to your unit’s interior. Some master policies have “all-in” coverage, meaning your entire dwelling, including your interior unit, is covered. You should always check your condo’s master policy when moving in.
What Does Insurance for Condos Cover?
Insurance coverage typically extends to:
- Personal property coverage includes all belongings found inside the property affected by water damages, e.g., furniture, electronics, clothing, and appliances.
- Built-in appliances such as kitchen units or water heaters are also covered. Certain insurance for condo policies may cover these under the HOA master policy.
- Liability claims and medical expenses cover incidents where a third party is injured at your property. You will be covered by their medical expenses and any liability claims.
- Additional living expenses include costs incurred if your property is rendered uninhabitable, e.g., temporary accommodation and food expenses.
When Does It Cover Water-related Damage?
While it does not exclude water-related damage as a category, only specific types of damage are covered. Water-related damage should be sudden and accidental in nature.
In general, condo damage covers water damage from:
- Burst pipe. So long as regular maintenance is performed, a burst pipe is covered by condo insurance.
- Water leaks through a roof into your unit are covered.
- Mold damage resulting from water damage is covered (immediate action must be taken).
When Does Insurance for Condos Not Cover Water-related Damage?
Not all cases of water-related harm are covered. Two specific (and serious) exclusions include:
- Flooding. Almost all standard insurance policies exclude flooding, from condos to renters to homeowners’ insurance. You must purchase a specific flooding policy from the National Flood Insurance Program (NFIP).
- Lack of maintenance. All insurance policies expect condo owners’ insurance to look after their property. That includes not neglecting major problems. You will not be covered if water-related damage is attributed to a lack of maintenance.
Can Insurance for Condos in Florida Exclude Water Damage?
Florida is a special case when it comes to water-related damage. Insurance companies base their policies on perceived risk. If you live in a hurricane-prone area, policies may exclude windstorm damage from your insurance policy.
Florida is no different. Condo policies will cover water damages so long as they aren’t listed as a peril in your policy. Some policies will say this — and you will need to read the entire policy to find out.
Even if your condo insurance in Florida does not exclude water damages, weather-related risks and a high frequency of claims lead to high insurance costs in the state. For example, the nationwide insurance for condos annual premium average of $512 — in Florida, it was almost double at $997, according to a 2019 NAIC report.
Flood Insurance
Flood insurance is essential for condo owners living on or near the ground floor. You will want to make sure the HOA master policy includes flood insurance.
If you believe the condo association’s insurance policy is insufficient, you can purchase insurance for a single-family residence (or even a contents-only policy).
Trust United Restoration
Given that condo insurance does cover specific types of water-related damage, if you’re experiencing any such damage, reach out to United Restoration as soon as possible. We’ll promptly and professionally handle your water damage repair needs, ensuring your property is restored to its pre-damage condition.
