Hurricane season starts June 1st. If you havenít
ensured that the association property is properly insured, you
better get busy. And fast. Letís go over what the condo
statute says about a boardís obligation to insure the
Florida Statute 718.111(11) states:
(a) Adequate property insurance, regardless of any requirement
in the declaration of condominium for coverage by the
association for full insurable value, replacement cost, or
similar coverage, must be based on the replacement cost of the
property to be insured as determined by an independent insurance
appraisal or update of a prior appraisal. The replacement cost
must be determined at least once every 36 months.
So, the first question isÖÖhas your association done an
independent appraisal in the last 36 months to determine what
the replacement cost of the property is? If not, youíre
violating the statute.
Does the developer have an obligation to ensure the property is
(b) If an association is a developer-controlled association, the
association shall exercise its best efforts to obtain and
maintain insurance as described in paragraph (a). Failure to
obtain and maintain adequate property insurance during any
period of developer control constitutes a breach of fiduciary
responsibility by the developer-appointed members of the board
of directors of the association, unless the members can show
that despite such failure, they have made their best efforts to
maintain the required coverage.
What about a boardís responsibility after turnover?
(d) An association controlled by unit owners operating as a
residential condominium shall use its best efforts to obtain and
maintain adequate property insurance to protect the association,
the association property, the common elements, and the
condominium property that must be insured by the association
pursuant to this subsection.
What about deductibles?
(c) Policies may include deductibles as determined by the board.
1. The deductibles must be consistent with industry standards
and prevailing practice for communities of similar size and age,
and having similar construction and facilities in the locale
where the condominium property is situated.
2. The deductibles may be based upon available funds, including
reserve accounts, or predetermined assessment authority at the
time the insurance is obtained.
3. The board shall establish the amount of deductibles based
upon the level of available funds and predetermined assessment
authority at a meeting of the board in the manner set forth in
So there you have it. The Board shall use its best efforts to
ensure the property is insured and has some discretion when it
comes to choosing a deductible. What it does not have is
discretion to say we donít want any insurance at all. So, if
your association is without windstorm coverage at the moment, I
would start shopping around.