Florida Homeowners Association Insurance Requirements to Know About

Florida Homeowners Association Insurance Requirements to Know About

As a Florida homeowners association, it’s important for you to have the right insurance. There are several requirements that need to be met. In order to meet the requirements, you need to read the Florida statute and be very familiar with the governing documents of your HOA.

Property vs. Liability

One of the first things that you need to know about is the difference between property and liability. Both are important forms of coverage for your HOA. You need to have coverage for all of the property that is encompassed by the HOA. You also need to have liability protection in the event someone gets injured and decides to sue.

Whether there’s a fire in a public building, an accident at the pool, or some other problem, you want to have the needed coverage. Property and liability are very different, though both are requirements.

Coverage for What the HOA Owns

All of what the HOA owns needs to be covered. This is required within the governing documents of your HOA and should be treated as the minimum standard. You have to take a good look at all that is owned by the HOA. This includes landscaping, public buildings, and land. The more you list within your policy, the more coverage you will have.

It’s important to consider each and every item that is owned by the HOA. The best thing to do is consider the worst case scenario. By doing this, you not only meet the basic requirements but also gain greater peace of mind.

Different Forms of Coverage

There are all sorts of different coverage options that you can obtain. The Florida homeowner’s association insurance requirements include property and liability coverage. Beyond that, there are other forms of coverage that you can choose as optional. This includes directors and officers insurance as well as demolition cost coverage.

Your goal is to protect your homeowner's association against loss, damage, and lawsuits. Once you meet the basic requirements for coverage, you can then determine how else to protect your HOA.

Consult with an Insurance Agent

An insurance agency can help you determine what the requirements are for your HOA insurance in Florida. It gives you the chance to meet the requirements and go above and beyond for a higher level of protection. A simple consultation can be an eye-opening experience so you know more about the insurance options available to you.

An insurance agent can help you to plan for the various situations that you could encounter. For example, you might want to look at building code upgrade coverage options. You might also want to look at diminution in value coverage. The latter will ensure that an insurance company pays the full value of a building even if only a percentage of the building is damaged.

Insurance for homeowners associations can be complicated. The requirements are not always cut and dry because of having to turn to various documents. By working with an experienced insurance agent, you can learn about the requirements and add plenty of protection for your HOA in Florida.