The following is a basic coverage check list of insurance related items you should consider when reviewing or replacing existing coverage.

Coverage items to consider.

  • Property coverage, you should to verify the property policy is written as special perils coverage. If you have property coverage with Citizens or another company that only offers Basic perils, you will need to enhance that policy with a DIC or wrap policy. The wrap policy upgrades the Basic perils policy to a special perils policy. This is essential.
  • Another key component to the property policy is the windstorm/hail deductible. You should verify that your wind deductible is a per building deductible. Generally, these deductibles are offered at 3% or 5%. A 3% deductible option is usually the lowest option available. A 3% wind/hail deductible for the association will usually cost about 10% more than a 5% Wind/Hall deductible.
  • You should verify if you policy includes coverage for Law and Ordinance. This provides coverage for buildings that are damaged and require building updates to comply with current building codes. Depending on the buildings construction date and building updates, coverage may not be available for a reasonable premium. (see definitions for more details)
  • For each policy you should be aware of the rating of the carrier. Are they AM Best or Demotech rated? Are they a Florida admitted company? Do they have adequate reserves to respond to a catastrophic loss?
  • You should verify that your appraisal is current. Has it been updated within the last 3 years?
  • Check your mitigation forms. Have they been completed? Have they been done properly? Often mitigation forms are subjective and certain credits can be missed.
  • General Liability. Is this an A-rated carrier? Are you aware of all policy exclusions?  Was the carrier made aware of all exposures?  Some examples are  pool, clubhouse, recreation room, tennis courts, sauna, card room, playground, lake, retention pond, private roads or guard houses.
  • Fidelity Bond. Florida Statute states you should carry a maximum amount that you have in the bank at any time throughout the year.
  • Umbrella coverage we generally recommend anywhere between a $1,000,000 and $25,000,000 policy depending on the size of your association.

These are just a few examples and a very broad overview. Our agents will be happy to sit down with property managers and Board members for a thorough policy review to ensure that all parties are satisfied and confident in the policies and coverage’s placed for the association by Statewide Condominium Insurance.