A condominium association in Florida is required by law to “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, which must be insured by the association pursuant to this subsection.” §718.111(11), F.S. While condominium associations are required to use their best efforts to obtain adequate insurance, there is no such requirement to actually use said insurance, despite the intention of the legislature in having enacted Section 718.111(11).[1]
It is surprising how many condominium associations opt not to report insurance claims, typically in fear of raising their insurance premiums, a very real concern in Florida over the past few years. However, property insurers do not increase premiums based solely upon the number of claims a single insured reports. Rather, insurance companies consider several factors, including the number of claims reported in a geographical area, whether the property is located in an area more prone to natural disasters, and the age of the property. While it is possible for your premiums to increase solely as a result of reporting multiple claims, you would have to report an unusually high number of claims in a short period of time.[2]
Conversely, if a condominium association fails to report a claim, it could consign itself to footing the bill for a repair potentially costing tens of thousands of dollars—especially with inflation over the past few years.[3] Further, if the repair is shoddily done and causes more damage, the association will have a far more difficult time securing insurance coverage than it would had it reported the initial claim in the first place.
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