Insurance Restoration for Condominiums
Navigate the complexities of condo insurance claims with expert guidance. From HOA master policies to unit owner coverage, we help Tampa Bay condominiums recover completely from damage events.
Condo Insurance Coverage Types
Understanding who covers what is essential for successful restoration.
Master Policy (HOA Coverage)
Covers: Building structure, common areas, shared systems
Typical Limits: $1M-$50M+ depending on building size
Claim Process: Association files claim; board oversees restoration
Challenge: Multiple decision-makers; political dynamics
Unit Owner HO-6 Policy
Covers: Interior finishes, personal property, improvements
Typical Limits: $100K-$500K coverage
Claim Process: Individual owner files; coordinates with HOA
Challenge: Delineation between HOA and owner responsibility
Loss Assessment Coverage
Covers: Owner's share of HOA deductible or uninsured losses
Typical Limits: $1,000-$50,000 coverage
Claim Process: Owner claims when special assessment issued
Challenge: Often inadequate limits; underutilized
Directors & Officers (D&O)
Covers: Board member liability for restoration decisions
Typical Limits: $1M-$5M coverage
Claim Process: Triggered by lawsuits against board
Challenge: Does not cover construction defects
Common Damage Scenarios
How different damage types are typically handled in condo restoration.
| Scenario | Master Policy Covers | Unit Owner Covers | Coordination Needed | Timeline |
|---|---|---|---|---|
| Hurricane/Wind Damage | Roof, exterior walls, windows (common elements) | Interior water intrusion, personal property | HOA must secure building; owners handle unit interiors | 6-18 months typical for full restoration |
| Water Damage (Pipe Break) | Pipes in walls, damage to multiple units from common pipes | Unit interior if source was in their unit | Source determination critical; may involve litigation | 2-6 months depending on scope |
| Fire Damage | Structural damage, common area restoration | Unit contents, betterments and improvements | May require temporary relocation coordination | 6-24 months for significant fires |
| Flood Damage | Separate flood policy required (NFIP or private) | Contents coverage separate from HOA flood policy | FEMA involvement; different claim process | 6-12 months; funding delays common |
Condo Restoration Process
Parallel tracks for HOA and unit owner actions throughout restoration.
Emergency Response
HOA/Board Actions
- Document damage with photos/video
- Secure building and prevent further damage
- Notify insurance carrier immediately
- Arrange emergency board meeting
Unit Owner Actions
- Document unit damage thoroughly
- Notify HOA of unit-specific issues
- File HO-6 claim if applicable
- Arrange temporary relocation if needed
Claim Documentation
HOA/Board Actions
- Obtain scope of damage assessment
- Get preliminary repair estimates
- Submit proof of loss to carrier
- Coordinate with adjuster inspections
Unit Owner Actions
- Inventory personal property losses
- Get quotes for interior repairs
- Attend HOA/adjuster meetings
- Request scope determination letter
Contractor Selection
HOA/Board Actions
- Solicit bids from qualified contractors
- Verify insurance and licensing
- Present options to board for approval
- Negotiate contract terms
Unit Owner Actions
- Understand what HOA contract covers
- Select contractor for unit-specific work
- Coordinate access schedules
- Clarify upgrade vs. restoration scope
Restoration Execution
HOA/Board Actions
- Manage contractor performance
- Process draw requests with carrier
- Communicate progress to owners
- Handle change orders appropriately
Unit Owner Actions
- Coordinate unit access with contractors
- Document progress and issues
- Approve work affecting unit interior
- Track expenses for insurance
Completion & Closeout
HOA/Board Actions
- Final inspection and punch list
- Close out insurance claim
- Release retention to contractor
- Document warranties
Unit Owner Actions
- Final walkthrough of unit
- Close out HO-6 claim
- File for loss assessment if needed
- Update HOA on completion
Common Challenges & Solutions
Anticipate these issues in condo restoration projects.
Scope Disputes
Disagreement over what's covered and by whom
Solution: Get written determination from both carriers before starting work; review declarations pages and CC&Rs carefully
Prevention: Annual insurance review with association attorney
Underfunding/Underinsurance
Master policy limits insufficient for full restoration
Solution: Special assessment to owners; negotiate with carrier; prioritize critical repairs
Prevention: Annual appraisal; adequate reserves; proper coverage review
Board Disputes/Delays
Board members disagree on restoration approach
Solution: Follow CC&Rs for major decisions; consider special meeting; professional management
Prevention: Clear emergency powers in governing documents
Unit Access Issues
Owners unavailable or uncooperative for repairs
Solution: CC&Rs typically grant emergency access; legal counsel if needed; document attempts
Prevention: Current contact info for all owners; clear access policies
Betterments and Improvements
Owners expect upgrades beyond original condition
Solution: Clearly communicate insurance covers like-kind replacement; owner-funded upgrades possible
Prevention: Written scope approval before work begins
Depreciation and ACV
Carrier pays actual cash value, not replacement cost
Solution: Complete work to trigger replacement cost holdback; document completion
Prevention: Ensure replacement cost coverage; review policy annually
Florida SB4D Considerations
How restoration work intersects with new condo safety requirements.
Milestone Inspections
Restoration may trigger inspection requirements
Consult with engineer before major structural work
SIRS Requirements
Post-restoration reserve funding may be affected
Update reserve study after significant restoration
Documentation
Maintenance records required by law
Document all restoration work thoroughly for compliance
Frequently Asked Questions
Need Condo Insurance Restoration Help?
FCS specializes in helping Tampa Bay condominiums navigate complex insurance claims. From initial documentation through final restoration, we ensure complete recovery for your community.