How To Secure Private Insurance For Your Florida Condo

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The current insurance crisis in Florida is getting worse by the day. If you own property in Florida, you will likely notice skyrocketing insurance rates. It is also possible that your insurance provider has left or is planning to leave the state.

Some insurers intend to stay but are working on limiting coverage and increasing premiums. This is a massive problem for thousands of homeowners. Sufficient insurance coverage is crucial especially since the U.S. is at the start of what is predicted to be a highly active Atlantic hurricane season. 

If you require condo insurance in Florida but are unsure how to secure the best coverage in light of the insurance crisis, keep reading. 

Why Is There An Insurance Crisis in Florida?


There are several reasons for Florida’s insurance crisis. One of the primary factors is the state’s ever-increasing vulnerability to natural disasters. Most parts of Florida are exposed to hurricanes, leaving the state open to catastrophic damage. As of June 2024, the state has suffered 89 weather/climate disasters, including floods and tropical cyclones. 

Disasters like these create ongoing insurance risks for providers. As such, reinsurance companies responsible for insuring insurance providers also demand higher premiums. 

According to an NBER study, Florida has the highest reinsurance exposure rate in the U.S., currently at 40%. This is also linked to the high-risk nature of the Florida insurance market.

Fraudulent Insurance Claims and Scams in Florida

Aside from exposure to extreme weather events, there is a steadily rising trend in fraudulent roof repair claims in Florida. When a hurricane or particularly bad storm occurs, hundreds of homeowners suffer roof damage to their homes and condos. 

Scammers use this to defraud people by telling them their roofs need replacing. They base this on a previous law stating that a roof with more than 25% damage must be fully replaced. These scammers blatantly lie, telling a homeowner their roof is 25% damaged. 

Then, they proceed to ‘replace’ the roof and bill the customer’s insurance company for the work. When the new roof inevitably goes sideways, the homeowner cannot contact the roofing company because there isn’t one. 

The best way to avoid these scammers is never to accept a ‘quote’ without doing your research or let just anyone work on your roof. This is especially true if they start by asking about your homeowner’s insurance policy. They will likely also claim you can get your roof ‘for free.’ This is another lie because deductibles apply to roof replacement after storm damage. 

Furthermore, aging condo buildings in Florida often require ongoing renovations and impact insurance rates. 

Securing Insurance For Your Condo

Despite all the uncertainty in the Florida insurance market, you still need to insure your condo. While Florida state laws do not require you to have condo insurance, your condo association likely will. 

Are you still paying off the mortgage on your condo? Your lender will likely require you to have at least the minimum amount of coverage. 

Condo insurance has two components. The first is a master policy maintained by the condo association. This policy covers the building’s exterior, shared areas, and amenities. 

You also need individual unit coverage to protect the interior of your condo, including your belongings. The current insurance market is extremely challenging. So, you must shop around before settling for an interior unit policy. Florida’s condo insurance market is also highly competitive. You will find several different rates and types of coverage.

You should also investigate ways to improve your condo building’s risk profile. Insurance companies typically favor buildings with stellar maintenance records.

Moreover, the condo association should keep architects and contractors from waiving or limiting their responsibilities. The relevant architect should hire the building envelope specialist assigned to the condominium. All contractors who work on or maintain the building should be included in relevant construction contracts.

Another way to secure coverage for your condo is to raise your insurance deductible. This is standard insurance practice and will lower your monthly premium. 

Depending on your condo’s location, you may want to consider additional coverage. This should include flood insurance to ensure comprehensive protection. 

What Will Your Insurance Policy Cover?

An individual unit policy will cover your fixtures and belongings against fire and theft. It will also cover storm damage from wind, etc. The part of your policy that covers built-in fixtures is called dwelling coverage. 

Your insurance policy will also include personal property coverage. This covers all your belongings, including furniture, clothes, electronics, appliances, etc. 

When you choose an insurance policy, ensure that it includes a loss of use benefit. This coverage will kick in if you cannot stay in your condo after a hurricane or other natural disaster.

In addition to natural disaster coverage, you should consider additional coverage for other scenarios. For instance, personal liability coverage gives you financial protection if you accidentally cause harm to another person or their property.

This means the other person’s expenses will be covered if your dog bites them or they slip and fall inside your condo. 

Moreover, most condo insurance policies do not automatically include coverage for certain types of damage. You must add coverage for specific scenarios. These extras will include damage caused by flooding, earthquakes, and mudslides.

You can also get coverage for wear and tear, insect infestations, and drain or sewer malfunctions. 

Other Factors to Consider

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There is always the potential for discounts. You may qualify if you live in a gated community or go without filing a claim for a specific amount of time. It is also important to look at your credit score. Florida insurers often use a credit-based insurance score to determine your monthly premium.

Data analysis has shown that condo owners with a lower or poor credit rating pay almost 30% more for insurance than those with good credit.

The Road Ahead

The Florida insurance crisis seems far from over. Therefore, you will likely experience different challenges while searching for the right insurance coverage for your home or condo. However, if you work with your condo association and proactively avoid fraudsters and scammers, you can secure private insurance to protect your investment.