Expert Advice on Condo Insurance Policies in Florida

Condos (or condominiums) are a great choice if you want to own a home without the hassle of maintaining a full house.

However, it’s important to note that the building’s master policy or homeowners insurance may not cover everything in your unit.

This is where HO-6 insurance or condo insurance in Florida comes in. It helps protect your belongings and the parts of your condo that you’re responsible for.

This article will help you explore everything you need to know about condo insurance in Florida, including how much it costs, what it covers, and tips to lower the premium.

Key takeaways

HO-6 insurance, or condo insurance, is not mandatory by state law but is often required by lenders or condo associations.
Condo insurance in Florida typically covers personal property, interior fixtures, and liability, while the condo association’s policy covers common areas.
Condo insurance costs in Florida vary widely based on location, unit size, and coverage needs.
Various tips, such as increasing deductibles, bundling policies, or installing safety features, can help reduce condo insurance premiums.

Is condo (HO-6) insurance mandatory in Florida?

Florida law doesn’t require individual condo owners to purchase insurance.

However, if you have a mortgage, your lender might require you to carry condo insurance as a loan condition. This is because the coverage protects the lender’s financial interest in your property.

Even if you don’t have a mortgage, your condo association may have its own rules requiring individual unit owners to maintain certain levels of coverage.

Whether your association or lender requires it or not, condo insurance in Florida could save you from significant financial stress in the event of a disaster. For instance, if hurricane winds severely damage your building:

The condo association’s master policy would cover rebuilding the structure and common areas.
However, it wouldn’t cover your personal belongings or damage to the interior of your unit.

If replacing lost items or repairing your unit would be a major financial burden, investing in an HO-6 policy in Florida can be a smart move – it ensures you’re protected when unexpected events occur.

Note: If you rent a condo or co-op, you don’t need condo insurance since you don’t own the unit. However, it’s a good idea to consider renters insurance (HO-4 policy). It can protect your belongings and offer personal liability coverage.

How is condo insurance different from home insurance?

When you compare condo insurance vs. homeowners insurance, the key difference lies in the scope of coverage.

Unlike homeowners insurance in Florida, which typically covers the entire property, HO-6 insurance focuses on the interior of your condo, including personal belongings and liability coverage.

This makes it a crucial layer of protection for unit owners.

How much is condo (HO-6) insurance in Florida?

So, how much is condo insurance in Florida?

The average condo insurance cost in Florida is $1,858 per year or about $155 per month. However, your actual rate will depend on several factors, including:

The amount and type of coverage you need
The age and construction of your unit and building
Neighborhood risk factors, such as crime rates or exposure to severe weather
Your credit score and insurance history

In Florida, condo insurance is typically more expensive in areas with high exposure to coastal storms.

Want to know more? Listed below are the condo insurance costs by location:

Miami

Condo insurance in Miami typically costs on the higher end of the spectrum due to increased hurricane risks and high property values. Annual premiums in Miami can go up to $2,570.

Orlando

In Orlando, where the hurricane risk is lower than coastal areas, condo insurance costs are more moderate. Floridians can expect to pay around $1,050 annually.

Tampa Bay

Tampa Bay’s proximity to the Gulf Coast results in moderately higher premiums, with rates typically reaching $1,125 per year.

Jacksonville

Jacksonville condo owners often pay some of the lowest rates in the state. For instance, property owners can pay $800 annually, thanks to a relatively lower risk of natural disasters.

What does condo insurance cover in Florida?

HO-6 insurance in Florida covers most things you would expect in a home – within the walls of your condo. Below are a few coverage types your FL condo insurance will typically include.

Dwelling coverage - Also called home structure coverage or Coverage A, dwelling coverage protects your condo's built-in fixtures. Under Florida law, your condo association’s master policy won’t cover flooring or carpet, wall or ceiling coverings, electrical fixtures, appliances, water heaters or filters, built-in cabinets and countertops, blinds, drapes, and other window treatments.

To ensure these items are covered, it is recommended to choose a high dwelling coverage limit to replace them if necessary.

Note: Some items, such as drapes, may instead fall under personal property coverage (explained below). If you’re unsure how much insurance you need for a condo in Florida, consult with your insurance agent.

Personal property coverage - The best condo insurance in Florida offers personal property coverage that protects your belongings, including furniture, electronics, clothing, and even small appliances like an ice cream maker.

If these items are damaged or stolen, this coverage could help replace them (minus the deductible). An HO-6 policy in Florida typically offers condo owners two types of personal property coverage: Actual Cash Value (ACV) and Replacement Cost Coverage. ACV reimburses you for the depreciated value of your belongings, meaning the payout reflects what the items are worth today rather than their original cost. Replacement Cost Coverage, on the other hand, covers the full cost to repair or replace your belongings without factoring in depreciation.

Remember that each policy has a coverage limit, the maximum amount you’ll be reimbursed for a claim. You’ll also need to pay a deductible before your insurance coverage kicks in.

It’s best to talk to your agent to understand which option works best for you.

Loss of use - If your condo becomes uninhabitable due to a covered event such as a fire or tornado, loss of use coverage within your Florida condominium insurance coverage could help with temporary living arrangements. This coverage includes Additional Living Expenses, which covers reasonable costs to maintain your normal standard of living during repairs. The amount and time frame for this assistance depend on the policy’s terms. Another aspect of loss of use coverage is Fair Rental Value, which reimburses lost rental income if a rented portion of your unit becomes uninhabitable due to a covered loss.

Personal liability - Personal liability coverage protects you financially if you accidentally harm someone or damage their property. This Florida HO-6 insurance coverage could help with legal fees if someone sues you after your dog bites them, medical bills for someone injured in your condo, and repair costs if you accidentally damage your neighbor’s property, such as breaking their window with a stray golf shot.

Choose adequate liability coverage to protect all your assets, including your home and investments.

Medical payments - Condominium insurance in Florida could also help pay medical expenses for guests who are accidentally injured on your property or by your activities up to the policy limits.

Note that it doesn’t cover medical costs for you, your family members, or anyone else who lives in your condo.

Loss assessment - Sometimes, your condo association may charge unit owners a fee (loss assessment) to cover damages or liability claims that exceed the association’s insurance policy.

For example, if a person is seriously wounded on shared property, such as a swimming pool, and the court awards a judgment higher than the condo association’s liability coverage, you could be responsible for part of the excess costs. Similarly, if significant damage happens to shared buildings and the condo association’s policy doesn’t fully cover the repairs, you may be required to help pay the remaining costs.

Loss assessment coverage could help pay your portion of these fees up to your coverage limit. Don’t forget to discuss your needs with your agent to select the right amount of coverage.

Does condo insurance cover water damage?

Many Floridians often ask, ‘Does condo insurance cover water damage?’ Well, the answer depends on the cause of the damage.

According to the Insurance Information Institute (III), insurance for condos in Florida may cover water damage caused by accidents such as burst pipes, rain, or ice dams. However, it typically does not cover sewer or drain backups or flooding – they require additional policies or endorsements.

As a condo owner, you're responsible for insuring your unit. If a water leak damages your condo, it’s your responsibility– not your Homeowners Association’s (HOA).

However, if you have condo insurance in Miami, South Florida, or any other region within the state, you’re generally protected against water damage caused by:

Your plumbing system
Appliances like your water heater
Heating or air conditioning systems

You should note that coverage applies only to accidental damage, not wear and tear. For example, if water damage occurs over weeks due to a slow leak, it may not be covered if considered a maintenance issue.

Burst pipes

If a burst pipe causes water damage, your condo owner’s insurance in Florida will typically help cover the repairs.

Water from common areas

Often, water from the condo building, such as a leaking roof or a common area, can complicate things.

The HOA’s master policy generally covers damage to common areas like the roof. However, if water leaks from the roof into your unit, your Miami condo insurance can help cover interior repairs.

To know exactly what’s covered, review your HOA’s master insurance policy and related documents, such as your condo association’s declarations and bylaws.

Do this before a problem arises, allowing you to adjust your coverage to fill any gaps.

Florida condo insurance coverage exclusions

While Condos insurance in Florida offers valuable protection, it doesn’t cover everything. The policy has a few limits. It doesn’t cover damage from rodents, insects, birds, or sewer backups and won’t pay for intentional harm you cause to others.

You may need additional coverage if you own high-value items such as jewelry or artwork since their value could exceed your policy’s standard limits.

That being said, here are some other situations typically not covered by a standard Florida HO-6 policy:

Normal wear and tear: If your coffee maker, dishwasher, or laptop breaks down due to regular use or neglect, your condo insurance in Florida likely won’t cover the cost of repairs or replacement.
Sewer or drain backups: Water damage from backed-up sewers or drains is also excluded. If this is a concern, you can add an endorsement for extra protection.
Floods and earthquakes: Standard condo insurance doesn’t cover damage to your unit or belongings caused by floods (such as storm surges or heavy rain) or earthquakes. You’ll need separate policies for these types of disasters.
Identity theft: This occurs when a criminal steals your personal or financial information, such as your Social Security number or bank account details. This can cost you money and time and even hurt your credit. Standard condo insurance doesn’t include identity theft protection, but you may be able to add it as an endorsement or purchase a separate policy.
Intentional damage or injuries: Any damage or injury caused intentionally – whether by the policyholder or someone else – is not eligible for coverage.

While these exclusions may seem like gaps, many of them can be addressed by purchasing additional coverage. For instance, you can buy flood insurance for water-related risks or add specific endorsements for sewer backups.

Assess your Florida condo insurance requirements in detail, including potential risks, and discuss additional coverage options with your insurance provider to ensure you’re fully protected.

Tips on how to reduce costs of condo insurance in Florida

If your condo insurance is breaking the bank, don’t worry – there are steps you can take, such as comparing HO-6 insurance quotes in Florida and asking about discounts, to lower your costs.

Here are some practical tips:

Shop around – compare Florida condo insurance quotes

Believe it or not, shopping around for HO-6 insurance in Florida to get quotes is key. While there are fewer condo insurance companies in Florida than there used to be, you still have choices.

Compare at least three condo insurance quotes in Florida to find the best rate. If you’re short on time or struggling to find companies willing to insure your unit, an independent insurance agent who writes condo insurance in Florida can help.

Ask about discounts

Are you taking advantage of all available discounts? Some of the best and cheapest condo insurance carriers in Florida offer savings for:

Bundling your condo and auto insurance policies.
Living in a gated community.
Maintaining a claim-free history.

If you install protective devices such as smoke detectors, security systems, or smart-home technology, they can add up and make you eligible for various discounts.

Improve your credit

An insurance company can use a credit-based insurance score to determine your rates. While this score isn’t the same as your credit score, they’re closely related.

Research shows people with lower insurance scores are more likely to file claims, so insurance companies often charge higher premiums for those with poor credit.

In Florida, condo owners with poor credit pay about 20% more on average than those with good credit. So, improve your credit and see significant savings on your policy.

Increase your deductible

Your deductible is the amount you’re responsible for paying out of pocket if you file a claim. Choosing a higher deductible could reduce your annual premium.

For example, raising your deductible to $1,000 in Florida could save you around 25%.

Still have questions?

Curious to learn more about condo insurance in Florida? Here are some frequently asked questions:

Why is condo insurance so expensive in Florida?

Condo insurance in Florida is often expensive due to the state’s high risk of hurricanes, flooding, and other natural disasters. Insurance companies factor in these risks when determining premiums, especially for properties in coastal areas.

Do I need hurricane insurance for a condo in Florida?

Yes, if your condo is in Florida, hurricane insurance is highly recommended. Most condo insurance policies include coverage for windstorm damage, but you’ll likely face a separate hurricane deductible. Additionally, flood insurance may be necessary in high-risk areas.

Why is everyone selling their condos in Florida?

There’s a growing trend of condo sales in Florida due to rising insurance costs, increasing property taxes, and concerns over climate-related risks. These factors make owning a condo less financially attractive for some individuals.

Who has the cheapest condo insurance in Florida?

The cheap condo insurance in Florida depends on your specific circumstances, such as location, features, and coverage needs. Companies such as State Farm, Allstate, and Progressive often offer competitive rates. However, shopping around and comparing HO-6 insurance in Florida is key to finding the best quotes.

Is condo insurance in Florida included in the mortgage?

No, condo insurance in Florida isn’t included in your mortgage. However, lenders often require you to obtain an HO-6 policy as a condition for financing. Your lender may set up an escrow account to collect and pay your insurance premiums and mortgage payments.