Association's Master Insurance Policies
The Association has eight master insurance policies on the condominium property and staff, including: Property
& General Liability, Boiler & Machinery, Island Marine, Wind, General Liability, Crime, Directors & Officers Liability
The Property and Wind policies cover all of the buildings and other structures within the community, including all
parts of the buildings exclusive of the individual units. This includes the exterior walls, doors, catwalks, stairways,
elevators, storage rooms, trash rooms, air conditioner compressor areas, recycling areas, and attached buildings or structures
housing mechanical or electrical (e.g. master circuit breakers or generators) equipment. It also includes:
portions of a unit, except interior surfaces, contributing to the support of the unit building including but not be limited
to the outside wall of the unit building and all fixtures on its exterior, boundary walls of units, floor and ceiling slabs
exclusive of finished surfaces and plaster, load-bearing columns and load-bearing walls.
All conduits, ducts, plumbing, wiring and other facilities for the furnishing of
utility services contained in the portion of a unit maintained by the Association. This includes electrical wiring up
to the unit’s circuit breaker panel, water pipes up to the individual unit shut-off valve, cable TV lines up to the
wall outlets in the unit, and sewer and fire sprinkler lines up to the point where they enter the unit.
All such facilities contained within a unit that service part or parts of
the condominium other than the unit within which contained.
Homeowners H06 Policy Defined
An H06 Policy is an insurance policy crafted specially for condominium unit owners that
bridges the gap between the insurance provided by the Association and each unit owner’s insurance needs.
It covers all personal property within the unit or limited common elements excluded from the Association's policies.
H06 Policies encompass the following five major areas: Dwelling Coverage, Personal Property, Loss of Use, Personal Liability
and Medical Payments.
1. Dwelling Coverage (Coverage A) generally insures the interior
walls, drywall, wallpaper, paneling, flooring, carpeting, and built-in cabinets. This covers the part of the
building (your unit) that you own. The interior of your unit is your responsibility, and it is important
to make sure your real estate investment is protected. Dwelling Coverage usually covers damage resulting from:
discharge, leaking or overflow of water from your plumbing lines, fixtures or appliances;
- Fire and lightning;
- Theft, vandalism and malicious mischief;
- Sudden, accidental damage from smoke;
or purposeful discharge of fire sprinklers; or
- Sudden, accidental tearing, cracking, burning or bulging of a hot
water heating system.
Dwelling Coverage does not cover damage caused by earthquakes, floods or hurricanes
or theft by someone named on your condo policy as an insured party.
2. Personal Property (Coverage C) typically protects your
personal belongings against the same list of risks and perils mentioned in Dwelling Coverage above. Your personal property
is not covered by the Association's master building policy, and you should protect it. Unlike dwelling coverage, where
the building policy might provide some coverage, your personal property is at risk. Personal property includes everything
you own in your home. Furniture, TVs, appliances, jewelry, computers, rugs, clothing, books, cookware, etc. Everything that
is not attached to your condo is personal property and it should be insured.
3. Loss of Use
(Coverage D) -
If a loss occurs and your condo is damaged,
it may take some time to renovate your condo. During this time, you will probably need somewhere else to live while the
work is being done. How will you pay for additional living expenses while your condo is being fixed? Loss of Use coverage
will insure you for temporary housing expenses such as an apartment rental. Loss of use coverage will also cover things
like furniture, car and boat storage, and even pet kennel expenses.
The Loss of Use coverage usually has a limit based
on a percentage of the Personal Property limit, often around 40%. For example: if you insure Personal Property for $30,000,
your Loss of Use coverage limit would be $12,000 (40% of $30,000).
4. Personal Liability (Coverage E) - One of the most important parts
of a condo insurance policy is the Personal Liability Coverage. This will cover you against lawsuits, legal expenses, and
medical costs if you are legally responsible for injury or property damage to others. The coverage here is variable, but
most insurance professionals recommend $500,000.
5. Medical Payments (Coverage F) - If a person is injured in your condo, and
they are not named on your policy, this coverage would pay for some minor medical treatment, such as exams or X-rays. Generally,
this coverage is fairly low ($1,000 - $2,000), but provides the insured with means to cover minor medical expenses without
filing a claim against the Personal Liability Coverage portion of the HO6.
All unit owners are encouraged to obtain a home owner insurance policy
covering all personal property within the unit and limited common elements. This will protect the owner from property
damage to their unit, liability claims against the unit owner, and Association property loss assessments. The Association’s
insurance policy covers damage to air conditioner compressors located on common Association property. All Association
buildings are in FEMA flood zone B, requiring no flood insurance.
Uniform Mitigation Verification Inspection Form
You can usually achieve significant savings on your H06 insurance policy by contracting a licensed Florida inspector
to visit your unit and complete the following form (OIR-B1-1802). Most of our units are protected with fire alarms
and sprinklers and have appropriate roof construction qualifying them for discounts. Owners with hurricane shutters
will receive additional savings.
Condo Damage Repair Responsibility
The question of who is responsible for repairs
resulting from accidental or intentional damage to condominium units has been frequently asked. When is the homeowner
responsible and to what extent, and when is the association responsible? Florida Statute 718.111(11)(J)
addresses this subject, eliminating any confusion regarding damage repair responsibilities for condominium units and
adjacent common elements:
1) For damages caused by accidental and unintentional (insurable) events:
condominium owner is only responsible for repairing any damage within the boundaries (inside the floor slab and inside the
exterior wall/ceiling drywall) of their condominium unit;
The Association is responsible for reconstructing, repairing and replacing any portion of the condominium (common)
property, including drywall, support structures, utility lines, etc.; and
Repair of other (adjacent) damaged units is the responsibility of the respective owners of those units.
2) For damages caused by intentional misconduct, negligence, or
failure to comply with Association rules, the unit owner is responsible for the costs of repair or replacement of any portion
of the condominium property not paid by insurance proceeds. This includes the cost of repairing or replacing other portions
of the condominium property including personal property of other unit owners or the Association.
3) The association is not obligated
to pay for reconstruction or repairs of property losses as a common expense if the property losses were known or should have
been known to a unit owner and were not reported to the association until after the insurance claim of the association for
that property was settled or resolved with finality, or denied because it was untimely filed.
Relevant Florida/Condo Statutes
Following are the specific statutes that address requirements for unit owner insurance policies and unit owner
FL Statute §627.714 — “Coverage under a unit owner’s residential
property policy must include at least $2,000 in property loss assessment coverage for all assessments made as a result of
the same direct loss to the property, regardless of the number of assessments”.
FL Statute §718.111(11)(g)2 — “Unit owners are responsible for
the cost of reconstruction of any portions of the condominium property for which the unit owner is required to carry property
insurance, and any such reconstruction work undertaken by the association is chargeable to the unit owner and enforceable
as an assessment”.
FL Statute §718.111(11)(j)1
— “A unit owner is responsible for the costs of repair or replacement of any portion of the condominium property
not paid by insurance proceeds if such damage is caused by intentional conduct, negligence, or failure to comply with the
terms of the declaration or the rules of the association by a unit owner, the members of his or her family, unit occupants,
tenants, guests, or invitees, without compromise of the subrogation rights of the insurer”.
FL Statute §718.111(11)(j)2 — “The provisions of subparagraph
1 (see “c” above) regarding the financial responsibility of a unit owner for the costs of repairing or replacing
other portions of the condominium property also apply to the costs of repair or replacement of personal property of other
unit owners or the association, as well as other property, whether real or personal, which the unit owners are required to
Jupiter Bay’s Declaration
of Condominium paragraph 9.1 — “Each individual unit owner shall be responsible for the purchasing of
liability insurance for accidents occurring in his or her own unit”.
An owner who has suffered a loss inside their unit should report the
loss to their H06 insurance carrier. In addition, they need to complete an Insurance Claim Form (see below) and provide
it to the Association Management Office. The Office will forward a copy of this form to the Association's Insurance
carrier for their review for any coverage under our master policy.
Hurricane Damage Assessment
Florida's hurricane season runs from June 1st until November 30th. After a hurricane it's important to survey
your condominium unit and access and document any damage. The following form will facilitate this process.
Major Florida Insurance Companies
It generally pays to contact a local agent who will shop for the best insurance policy for your needs. According
to an article in the 3/18/15 Palm Beach Post, the top 10 Florida property insurers are:
Citizens Property Insurance Corp.
Universal Property & Casualty Insurance
State Farm Florida Insurance Co.
American Integrity Insurance Co. Of Florida
Security First Insurance Co.
St. Johns Insurance Co. Inc.
Heritage Property & Casualty Insurance Co.
United Property & Casualty Insurance Co.
Federated National Insurance Co.
Homeowners Choice Property & Casualty Ins. Co.