Florida Statute § 718.111(4) gives condominium associations the power to make and collect assessments to “lease, maintain, repair, and replace the common elements of association property.” Typically, if common areas owned by condominium associations are damaged or destroyed, the associations may seek to have each of the individual unit owners pay for a portion of the damage. If the loss is one that the association is insured against, the association may still assess unit owners for any costs or liabilities other than what is recovered from the insurance claim.

Florida Statute § 627.714 requires that residential condominium unit insurance policies issued or renewed after July 1, 2010, must include at least $2,000 in property loss assessment coverage. This coverage would pay up to the stated amount for any assessments made upon each insured unit owner. When determining how much loss assessment coverage one should get, unit owners may want to consider what property the association is responsible for, how much insurance the association has, and how much previous assessments have been.

The loss assessment coverage provision of § 627.714 sets forth a few requirements:

  • Policy must include at least $2,000 worth of coverage
  • The coverage amount is in excess of all other coverage
  • Deductible can be no more than $250
  • The deductible will not apply if another one was already applied to the unit owner for the same loss
  • Coverage applies to all assessments made related to a particular loss
  • Loss must be to property owned by the community as a whole
  • Loss must be of the type covered by the unit owner’s homeowner policy

As long as the loss assessment coverage meets these minimum statutory requirements, it may include other terms and conditions. For example, as discussed in Loss Assessment Coverage and the “Master Deductible” Clause, depending on the policy written, this coverage may not apply to assessments made by associations to cover its own deductible on the association’s policy. Be sure to read each policy to determine what each policy’s loss assessment provisions cover.

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