Commercial Residential – Condo-Hotel Association & Unit Owners

When Fire, Smoke and Soot causes damage to the property, Remediation Protocol is necessary to properly restore your property. The results of the water used by the fire fighters to put out the fire causes additional damages to the property including but not limited to damage by water that my cause Mold/Fungi to building materials.

Water damage category 1 or 2 or 3- requires different types of Remediation- proper protocol is necessary to protect the property from further damage especially with category 3, the most contaminant category. Drying the property is the most important process required to protect the property from further damage.

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Condominium-Hotel Associations falls under Florida Statute Chapter 718 – A condo hotel, also known as a hotel-condo or a Contel, is a building, which is legally a condominium but which is operated as a hotel, offering short term rentals, and which maintains a Front Desk.

Unit Owners in some Condo-Hotels have a voluntary participation in the hotel program for short term rentals. While other Hotel Condos’ unit owners must participate in the hotel program.

For that matter condo hotels are sold as second, third, fourth or fifth homes, and they are not typically sold as primary residences. In fact, many of them limit the unit owner’s usage because their unit is wanted and expected to be included in the hotel inventory.

Condo hotels are typically high-rise buildings developed and operated as hotels, usually in major cities and resorts. These hotels have condominium units which allow someone to own a full-service vacation home.

When they are not using this home, they can leverage the marketing and management done by the hotel chain to rent and manage the condo unit as it would any other hotel room.

These properties were very popular a few years ago when real estate developers were converting many hotels to condo-hotel as the real estate was flourishing.

Similar to Residential Condominiums, they also elect volunteer board members whose duties and responsibilities are to handle the association maintenance and repairs of common areas, disputes, enforce rules and regulations, collect condominium association fees and are also responsible for insuring common areas, like hallways and building exteriors.

Some associations hire management companies to perform some or all of the duties mentioned above. Board members are volunteers of an association with undivided interest. Their job is to delegate and hire professionals to perform the duties of the association. Just like you hire a manager or management company to run the associations duties, you should hire a professional Public Insurance Adjuster to adjust your insurance claims.

Given the recent economic impact experienced by these associations due to the Real Estate Bubble, some of these associations have fallen victims of the current economic challenges.

We recognize these circumstances and are prepared to work closely with the Hotel and the board of directors’ management team or the board of directors to ensure adequate insurance claim settlements to the association.

In some cases other organizations are involved such as the developers, asset managers, and court appointed receivers. In that case we will work closely with them to meet the association’s insurance claims needs.

Most of these hotel-condo units are owned by foreigners whom they live outside of the country. Because of their distance and inability to be present or have knowledge of Florida laws and the United States laws, it makes even more sense to have a professional public insurance adjuster to adjust their insurance claim.

Your time and knowledge is invaluable; filing an insurance claim has many challenges and is not as simple as it should be. This is a job for a professional public insurance adjuster such as HomeOwner Claims Public Adjusters that will work for your best interest. Filing an insurance claim one has to know the language of insurance, is tedious, intricate, complex and time consuming.

It is a greater challenge when it involves the many owners that you must protect and the many people that you work with in a Condominium Association.

Ask yourself these questions? Can you give up your time? Do you know how to keep records of the loss? Do you know what the insurance policy covers? Can you take the chance to be wrong? Can you afford controversy with the tenant? It’s been proven that an unbiased third party would bring better results to the table. Your claim can be prejudiced if improperly presented. What will you say to the owners or the tenants that rely on you to make the right decision and protect their best interest?

Remember that as a Landlord you must protect your Tenant’s interest in your property.

We specialize in insurance claims of condominium association and Condo-Hotels. We settle more and quicker insurance claims because of our long standing relationships within the insurance industry proven by our track record of performance in dealing with both the insurance companies, who provide the coverage, and the policyholders “our clients” in which we service.

This means that you have a dedicated insurance public adjuster who has worked in all 3 capacities of adjuster since 1979 by your side with the experience, knowledge, we speak insurance language and competency to make sure we settle your claim fairly to restore your property to pre-loss condition or better. We strongly believe that HomeOwner Claims Public Adjusters has earned their reputation and continues to raise the standards of commercial and residential properties insurance claim services.

The laws affecting the insurance of condominium association, Co-Ops and Homeowners’ association have been known to change every year. In 2014 the legislative session brings Senate Bill SB 798 and House bill HB 807 changing the Residential Property and HB 425 and SB 440 relating to Condominiums. No two policies are alike, even from one year to the next. This unique legal structure requires special attention by your public insurance adjuster with the many changes and risks within a condominium association.

These types of policies are very intricate and require attention to detail when adjusting such unique risks. We encourage every policy holder to engage our services due to the complexities of these unique risks.

F.S. 718.111 requires the Condo Association building to be insured to replacement value, and the replacement value must be obtained from an appraisal or update of a prior real estate appraisal and determined at least every 36 months.

As of 07/01/2010, Associations are no longer required to request that each unit owner provide evidence of current, effective property and liability insurance. Associations are no longer authorized to purchase a policy of such insurance on behalf of a unit owner. Unit owners are no longer required to name the association as an additional named insured and loss payee on their insurance policy. Therefore, the unit owner will no longer need to obtain the association endorsement for payments made by the unit owner’s insurance carrier. However, every unit owner should have their own unit insurance policy to cover any property damage inside their units.

As of 07/01/2010, this section still requires the unit owner’s insurance policy to cover the inside of their units for all personal property within the unit or limited common elements, including the floor covering, wall coverings, ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets, countertops, window treatment components, or replacements of any of these. Currently the Florida statute dictates what the association insurance and unit insurance covers.

Please note: Unit owners are no longer required to purchase special assessment coverage of at least $2,000.00 per occurrence under F.S. 718.111. However, HomeOwner Claims Public Adjusters strongly recommends that each unit owner should have their own insurance policy and carry special assessment of at least $2,000.00 but recommends limits of $5,000.00.

Condominium Governance for Florida

Role of the Board of Directors

Department of Business and Professional Regulation
Division of Florida Condominiums, Timeshares, and Mobile Homes
1940 North Monroe Street, Tallahassee, Florida 32399-1030
Telephone: 850-488-1122 Facsimile: 850-488-7149
Web Address:

Commercial – Coinsurance Clause

Most Property Insurance policy has Co-Insurance Clause. Coinsurance is a two party agreement. It is a requirement that makes the insured/Policyholder purchase insurance equal to an agreed percentage of their property value, or to participate in a loss if the required amount of insurance is not in force at the time of the loss.

The insurance company’s part of the agreement is to provide coverage at a reduced rate and, in the event of a loss, cover the loss up to the amount of the policy contract.

The insured’s part of the agreement is to maintain the amount of insurance at all times equal to the chosen coinsurance percentage, which is normally 80%, 90% or 100% of property value.

Coinsurance can best be explained using the following example: A merchant declares the value of the property to be $100,000 and agrees to insure 80% of the value or $80,000. A loss occurs for $50,000. When the insurance company appraises the property after the loss, it is discovered that the actual value of the property should have been reported at $200,000.Therefore the insured should have carried 80% of the $200,000 or $160,000.

The formula used by the insurance company to determine the amount of claim payment is the amount of insurance carried, divided by the amount insurance required, multiplied by the amount of the loss. In this case, it would be $80,000 (amount of insurance carried), divided by the $160,000 (amount of insurance that should have been carried), which equals 50%. This percentage is multiplied times the amount of loss of $50,000, which equals a claim settlement of $25,000.

Caution: The insurer may apply the building co-insurance on a replacement cost amount different from the replacement cost insured limits. If so, what method did the insurer utilize the replacement cost amount and to who’s benefit. Many times as you can see the above illustration the claim payment amounts depends on the Co-insurance applied. Depending on whose numbers is used, it can be a detrimental outcome in the insured’s settlement amount. This significant difference can be avoided by hiring the professional services of HomeOwner Claims Public Adjusters. In addition, commercial losses are paid on the actual cash value of the claim amount until the property is completely restore, so any co-insurance calculation should be figured in actual cash values of the building which can make a big difference in the claim payment and if a dispute arises about a co-insurance penalty it can be argued.

Myth or Fact

Does the insurance of the Condominium Association or the Insurance of the Condo-Hotel Association cover the inside of my unit?

Property Protection- There is a Myth or misconception that the condominium association insurance covers the interior of the owners unit. Condominium associations are responsible for insuring common elements and Co-Ops are responsible for the common areas, such as the building exterior, walkways, club house, gym, etc. But as a condo owner, you’re typically responsible for covering everything inside your unit, including cabinetry and appliances.

Talk to your agent to calculate an appropriate amount. Condo-Hotels unit owners that participate in the short rentals should also inform their insurance agent of the short term rentals to appropriately insure the property and against any civil liability. In addition, ask the hotel management if they have them as additional named insured’s for their units.

The photos show water damage to the walls

and Terracotta floor tile stains and damaged contents


As a condominium unit owner or tenant it is your responsibility to protect and insure the interior of your unit against perils such as; fire, smoke damage, damage from water leaks, Air Conditioning water leaks, theft, lightning and more… Unit owners or tenants should take into consideration of protecting their most valuable assets such as; the interior of the unit, their contents, liability, medical payments to others, additional living expenses and loss assessment coverage. Talk to your insurance agent about these coverages and more today.

Below explains the most common perils covered in a HO-6 insurance policy for condominium unit owners.

Property Damage-
The condominium unit owners are responsible for insuring the interior of their units.

The unit owner’s insurance policy covers all personal property within the unit, limited common elements, floor coverings, wall coverings, ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets, countertops, window treatment components, or replacements of any of these.

Personal Contents-
Condominium unit owners are responsible for insuring the interior of their units.

Condominium unit owners must purchase unit insurance to cover the interior of their unit. It covers their personal contents, liability, and special assessment and more.

Tenants should buy renters insurance to protect their personal contents; it also covers civil liability and more.

The insurance policy for unit owners and the tenants covers the physical damage to the property. The most common insured perils are; fire, smoke, water damage, mold/fungi, theft, vandalism, Malicious Mischief and more.

Liability Protection
This coverage helps protect you against the legal responsibility for any injury or property damage that you or anyone else insured under your policy may have caused to other people on or away from your property.

This insurance policy includes compensation for the injured party, the cost of defending you in court and most court awards up to the limits of your policy. If you have significant personal assets, you should consider purchasing additional levels of civil liability protection.

Additional Living Expenses-
If a covered loss (like a fire) makes your condominium unit uninhabitable, this policy will cover the reasonable increase in expenses needed to maintain your normal standard of living for a certain amount of time. This may include payments for a hotel, food and other expenses.

Guest Medical Protection-
If someone inside your condo is accidentally injured, this coverage can provide payments for reasonable medical expenses, whether or not an accident in your home was your fault.

Residential Coverage Type – Condominium Loss Assessment

Loss Assessments Coverage-
If your condominium association levies special assessments against you resulting from certain losses to your condominium complex, your policy will pay your share of such assessments up to the coverage limit. Most insurance policies cover $1,000.00. We encourage all unit policyholders to increase their limits to at least $5,000.00.

Before the law was enacted and repealed for unit owners to carry $2,000.00 limit in special assessment, most unit owners insurance policies carried $1,000.00 limit for special assessment.

HomeOwner Claims Public Adjusters highly recommends that all unit owners carry unit insurance coverage and special assessment limits of a minimum of $2,000.00 but would prefer they carry the limit of $5,000.00, especially when the condominium associations are carrying higher deductibles today.

Please note: Uninsured or underinsured losses are considered a common expense of the condominium. The condo association board determines the deductible for the association insurance policy. The bylaws can specify how these types of losses will be shared.

Residential Coverage Type – Condo Unit Owners Special Coverage Endorsement
Every unit owner should have this endorsement added to their HO-6 policy

Condominium Unit with water intrusion under the doors

This endorsement provides broader coverage – responding to any cause of loss except those specifically excluded, such as the example above, or for instance, this endorsement would cover accidental damage to floors, ceilings and walls from accidental paint spills. The paint spill would not be covered with the Basic H06 since it is not a listed peril. The paint spill would be covered if you purchased this endorsement because the insurance policy does not contain exclusion for accidental paint spills.

Property Managers

HomeOwner Claims Public Adjusters work with different property managers and management companies. We value all of our management relationships and provide them with the service they deserve. We understand their busy schedules and work within their schedules. We take pride in providing your clients our expertise in adjusting their insurance claims, we become your partners by working together; we cooperate with you, the Condo association board and staff while keeping all of you informed. At HomeOwner Claims Public Adjusters we understand that we are an extension of the management and value your trust, referrals and treat each client relationship with professionalism. While adjusting the insurance claim we provide the property manager with suggestions on the current policy. At the same time we recommend changes to the existing policy for any future claims that may occur.

At HomeOwner Claims Public Adjusters we understand the importance of our relationship to our clients, the Board of Directors, the unit owners, the staff and property managers. They need a professional adjuster that knows the “how”, the “when”, and the “what” to obtain the best results for all association members. They need someone that speaks the insurance language, someone that has the skills, experience, knowledge, competency and expertise of adjusting condominium insurance claims.

These types of policies are very intricate and require attention to detail when adjusting such unique risks. We encourage every policy holder to engage our services due to the complexities of these unique risks.

Disclaimer: Insurance losses to Condominium Associations and Condominium Units are subject to your insurance policy, the Condominium By laws and Chapter 718 Florida Statutes, The Condominium Act.

The descriptions of coverage’s and programs are necessarily brief and are subject to policy provisions, limitations and exclusions that can only be expressed in the policy itself. Coverages and programs vary by state and are not available in all states. For a complete explanation of coverages, please consult your insurance agent and/or policy. Your policy is tailored to your Risk.