High rise condominiums near the ocean are especially vulnerable to severe flood damage in a way that inland condos are not; and, while uncommon, erosion from storm surge or other weather events can even cause full condominium buildings to collapse, as happened during 2022’s Hurricane Nicole. This blog answers some common questions about flood insurance for condo owners.
Do Condos in Florida Require Flood Insurance?
The short answer is, it depends. To know for sure, you should check several factors, including your flood zone, your lender’s requirements, and your condo association’s master policy. Some condos in high-risk flood areas require flood insurance; even if they don’t, Florida is prone to weather events like storms, hurricanes, and floods, and flood insurance is a good way to protect your home.
What Is the New Flood Insurance Law in Florida?
Florida has been taking steps to encourage insurance providers to make flood insurance more widely available. Consequently, there’s a new law that factors into this question, Senate Bill 2A, which requires the owners of all structures with a replacement value of $600,000 or more to obtain flood insurance by January 2024. The bill also mandates that most personal residential policyholders with wind coverage policies through Citizens Property Insurance Corp are required to purchase flood coverage by 2027.
However, it’s important to note that not all policyholders are required to purchase flood insurance. To know more about your specific situation, consult your policy or speak to your insurance representative.
Who Is Responsible for Flood Damage in a Condo in Florida?
Responsibility for flood damage is almost always split between the condo association and the individual unit owner. Condo associations are usually responsible for insuring any common areas, including shared walls, roofs, walkways, and shared spaces like pools or clubhouses. Individual unit owners are responsible for the contents of their units, particularly items such as appliances, wall coverings and treatments, and most internal fixtures. The exact split of responsibility should be detailed by the condo’s governing documents and bylaws; it’s a good idea to carefully review those when making your insurance decisions.
An example of the importance of flood insurance came to us in 2022, when Hurricane Nicole collapsed at least one Florida condominium. While rare, I have represented a number of condominiums that collapsed during a hurricane event; the Pirate’s Cove community was one of at least 13 buildings that were evacuated due to the threat of collapse.
For more information about flood insurance in Florida, check out our recent post, How Much is Flood Insurance in Florida?
What Is the Formula for Determining the Maximum of Coverage in a Condominium Building?
While there is no exact formula, National Flood policies state that Condominium Associations are entitled to insure up to a total of $250,000 multiplied by the number of units in the condominium. Unit owners can obtain National Flood policies up to an additional $100,000 for contents. In addition, associations and unit owners can purchase private flood insurance to guard against rare occurrences like building collapse.
How Do I Check the Flood Zone of My Condo?
Knowing the flood zone of your condo can help you make informed decisions regarding your flood insurance purpose. The Federal Emergency Management Agency (FEMA) Flood Map Service Center is a highly reliable tool that allows consumers to check their flood zone themselves.
Other ways to check the flood zone of your condo building include local government zoning maps and the records of your condo association. Because flood zones can change, it’s a good idea to check your flood zone every few years.
Further Resources on Insurance Coverage Law
Navigating the complexities of insurance claims can feel overwhelming. Whether you’re facing unpaid claims or simply filing for the first time, our eBooks equip you with the crucial information you need to advocate for yourself with confidence.
- Filing A Property Insurance Claim
- Insurance Company Response Time
- What To Do When You Have a Denied/Underpaid Claim
- Wildfire Claims
- Flood Claims Handbook
- More Information on Hurricane Deductible and Policy Limits
- Condominium Hurricane Preparedness
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