What insurance do I need for a townhouse in Florida?
This one is not so simple as the answer hinges on the question of what insurance (IF ANY) does the association have on the property?
First, we must understand the different types of ownership. A townhouse is a form of ownership where the property that one owns consist of the land below the building, patio decks and driveways up to 1/2 the depth of any shared ‘party’ walls, right up into space. By contrast, a condominium is a form of ownership where one owns a box of improvements in space. The condominium association owns the property (common area) from the unfinished floor/walls.ceilings outward. The best way to determine this is to look at the last deed conveying they property. If it reads something like parcel xx of the association platted as yyyy then it is a townhouse. If it says something like unit number xx of the association under the declaration recorded in book xx and page y then it’s a condominium. So, is it a townhouse, a condominium, or a condominium that looks like a townhouse or even a house like in Twelve Oaks or Via Del Mar?
Let’s assume that it is a townhouse then one could look at the recorded docs to see what’s SUPPOSED to be covered by the association insurance policy or ask the Realtor but THE EASIEST AND BEST WAY is to ask for a certificate of insurance for the association’s policy. This will state what is covered and what the limits of the coverage are. With this information one can go to their own agent and obtain a quote for what’s not covered by the association policy WHICH CAN VARY GREATLY. You will be getting a modified HO 3 policy which is a typical homeowners policy with exclusions based upon what the association covers as there’s no need for double coverage.
UNLESS, the townhouse association has CHOSEN to buy what is a condominium style policy. You see in Florida what’s covered on a condominium insurance policy is set out in the statute. Since there’s alot of condominiums in Florida some townhouse associations feel it’s simpler and cheaper for the residents to have a condominium style policy for all of the townhouses which will replace everything from the unfinished face of the walls/floor(s)/roof outward. If this is the case then you would get an HO 6 policy. HO 6 policies are typically for condominium unit owners and are meant to ‘mesh’ with association policies. This makes things much simpler for all.
FOR TOWNHOUSES:
CASE 1 – If the homeowners association does not carry ANY insurance then you would obtain an unmodified HO 3 policy.
CASE 2 – The homeowners association has a policy which covers a portion of the property (typically the roof and structure) and in this case you would obtain a modified HO 3 policy.
CASE 3 – The homeowners association has chosen to insure the property as a condominium and in this case you would obtain an HO 6 policy.
