First, does your Association provide a Master Flood Policy through the RCBAP, Residential Condominium Building Association Policy administered by FEMA?  The RCBAP limits the flood coverage that can be purchased by the Association up to $250,000.coverage limit per condo unit in the building.  This program requires the Assoc. flood insurance to be purchased at a limit equal to 80% or greater of replacement value of the building in order to avoid a “Co Insurance” loss penalty at time of a claim.  The RCBAP policy covers all building items regardless of who installed them.  This is broader than the coverage required by the Florida Condominium Statute.

The Condominium Owners Policy form HO6 in Florida does not provide any Flood coverage.  The Loss Assessment coverage within the HO6 will not respond to a flood loss to Association property.

The only way that a unit owner can cover a Loss Assessment for a direct flood loss to Association owned buildings is to purchase an individual flood policy with building coverage from National Flood Insurance Program.  The Building Coverage Limit will double as the Loss Assessment coverage limit.  There is no deductible for a covered Loss Assessment claim.

This Individual Flood Policy will also typically provide Loss Assessment coverage for the following:

• When the RCBAP has been written for a coverage limit of at least 80% but less than 100% of replacement value.
• Assessments due to there being NO RCBAP coverage at all.
• Assessment for damage to a non covered building.

This is not a complete analysis of this issue, but it points out some very important considerations for the Condo Owner…..

• Find out what Flood Insurance is in place for your Association property.
• Question whether coverage limits are at 100% of replacement value?

You can read more at Condo Owners Flood Insurance.

Questions…Call SWFL Insurance Agency, Inc. at 239-265-9577 or email us at  info@swflagency.com