When you purchase a condominium in a planned community, you’re typically obligated to pay a monthly or annual homeowners’ association management fee. This fee goes towards maintaining the quality of life in the community and protecting property values for all of the owners in the condominium.
Most homeowners’ associations also have insurance policies in place to protect the community from expensive litigation and claims, and a portion of the association management fees that homeowners pay goes towards this coverage. For condominium communities in Florida, HOA board members need to make sure that they have a clear understanding of the type of catastrophe insurance the homeowners’ association has on a building.
What is catastrophe insurance?
If you live in an area like Florida that is susceptible to hurricanes, tropical storms, and flooding, your homeowners’ association needs to have catastrophe insurance coverage in place. Having catastrophe insurance coverage for your condominium will help to protect the common areas of your building in the event that they are to become damaged by a severe natural or man-made disaster.
Why does the type of catastrophe insurance matter?
Some types of catastrophe coverage may already be included in a homeowners’ insurance policy, but many events such as flooding require separate coverage. It’s important to understand the types of catastrophe coverage that your homeowners’ association has in place to ensure that your building will be protected if a disaster comes your way.
The types of natural disasters and catastrophes that are typically excluded from a homeowners’ insurance policy include floods, earthquakes, septic system/sump pump issues, and hurricanes. Certain geographic areas in the U.S. including Florida offer special catastrophe insurance coverage to help protect your building and common areas from natural disasters that are more likely to occur in the area.
As the board members of your community’s homeowners’ association, it’s in the best interest of your property to ensure that you have the right insurance coverage in place. Even more so for Florida property owners, it’s critical that you have catastrophe coverage in place to further protect your property.
Understanding insurance coverage and making sure that your building is adequately protected from anything that Mother Nature throws your way can be challenging, and you owe it to your homeowners’ association to get it right. Vesta Property Services is a residential association management company that has been serving communities in Florida for the past 25 years. Our extensive experience and knowledge of the market allows us to serve as a valuable advisor to your homeowners’ association to ensure that you have the best insurance coverage in place.
Please contact us at Vesta Property Services to learn more about the types of catastrophe insurance that residential communities in Florida need to have in place.