Legendary funny man Benny Goodman once said, “I don’t want to tell you how much insurance I carry with the Prudential, but all I can say is: when I go, they go too!” The comedian hits on all-important issue: how much insurance is too much, and how much is not enough?
While individual residents of a multifamily association in Florida are encouraged to carry adequate coverage in case of a severe accident or catastrophe, condominium and homeowner association boards have a stake in their residents carrying adequate insurance as well.
“In order to determine whether an owner/shareholder has adequate coverage for their possessions, all owners/shareholders should obtain a copy of the master insurance policy of the association to determine what property is covered under such policy,” says Michael Bender, an attorney and partner with the law firm of Kaye Bender Rembaum in Pompano Beach. He adds that an owner can make a written request to the association to inspect the “official records,” which must include a copy of all insurance policies of the association.
While some condominium associations offer all-in coverage in their master policy, the vast majority require unit owners to carry HO-6 or 'dwelling coverage' as well. According to insurance industry website,www.InsureOurCondo.com, these insurance policies usually cover things like accidental discharge or overflow of water from your plumbing, fire and lightning, explosions, theft, vandalism and malicious mischief, sudden accidental damage from smoke, and so forth.