Condominium Building Insurance Appraisals

This type of policy is also known as Hazard Insurance, it covers the common areas of the building but does not include interior finishes. If the association wants to cover the interior portions of the units, the association needs a Residential Condominium Building Association Policy (RCBAP).

The State of Florida requires that condominiums obtain an independent insurance appraisal every 36 months. See Florida Statues 718.11, Part 11-A. Excerpt below.

“(a) Adequate property insurance, regardless of any requirement in the declaration of condominium for coverage by the association for full insurable value, replacement cost, or similar coverage, must be based on the replacement cost of the property to be insured as determined by an independent insurance appraisal or update of a prior appraisal. The replacement cost must be determined at least once every 36 months.”

“3. The coverage must exclude all personal property within the unit or limited common elements, and floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments, including curtains, drapes, blinds, hardware, and similar window treatment components, or replacements of any of the foregoing which are located within the boundaries of the unit and serve only such unit. Such property and any insurance thereupon is the responsibility of the unit owner.”

Our Condominium Cost estimates use Core Logic’s MBV Commercial, one of the main cost sources in the insurance and building industries. The cost estimate we provide are reconstruction costs. We also separate the insurance exclusions required by most insurance policies.

The insurance exclusions separate certain items of insured property are either not insured or are specifically excluded from coverage depending on the particular terms of an insurance policy. The four most common exclusions are: basement excavation; below grade foundations; underground plumbing, piping and conduits; and architectural fees.

Note that per Florida Statues 718.11, the interiors of the condominium unit are not included in our construction costs. These items are the responsibility of the individual unit owners.