Why you should consider flood insurance when living in a condo
Where it rains–it floods.
Flood Insurance for Individual Condo Units
You likely have an HO6 condo policy that covers the interior of your unit, contents, and living expenses if there is a fire, burst water pipe, or windstorm. Did you know it does not cover flood damage? One inch of water can cause $25,000 of damage to your home.
How Individual Condo Insurance Protects You
An individual flood policy can safeguard you when it comes to a flood in a few ways.
A flood policy can provide gap coverage between the condo association’s flood policy and the maximum coverage available. For example, Tom lives on the first floor of a condo and his Association carries a flood insurance policy for the entire building (RCBAP) that provides $200,000 in coverage for each unit. Tom’s unit has $250,000 in damage. In the event of a flood, Tom’s flood policy could cover the $50K difference.
*The maximum NFIP will pay out per unit with the two policies is $250,000.
Additionally, an individual flood policy can cover the cost of a special assessment. Mary lives on the 20th floor and carries an individual flood policy with $20K in coverage. The first and second floors were flooded during a hurricane. As a unit owner, Mary is still responsible for a portion of the repair cost that may exceed the Association’s flood policy coverage. If the Association imposes a special assessment of $10,000 per unit to cover the repairs from flood damage, Mary can submit a claim under her individual flood policy.
*HO6 condo policies that provide coverage for wind/hurricane do not extend Loss Assessment coverage to flood damage due to overall policy Flood damage exclusion.
*Individual flood insurance policies most likely do not cover the cost of the Association’s flood insurance deductible.
Carrying flood insurance when the Association does not. Nancy lives in a first-floor condo building, not in a standard flood zone. The Association decided not to carry flood insurance for the building. Nancy purchased an individual flood insurance policy that provides coverage to her unit from flood damage and coverage for her personal property. If the first-floor units sustain damage from rising ground surface water during a storm, Nancy has coverage for the damage in her unit, whereas her neighbor without flood insurance is out of pocket.
Coverage for your personal property. Laurie lives in a first-floor condo building and her Association has flood insurance (RCBAP) with up to $250K coverage per unit. Flooding damages all first-floor units. Fortunately, Laurie carries an individual flood insurance policy with $100K in coverage for contents. The Association’s policy takes care of the dwelling damage and she has $100K in coverage to replace her furniture, clothing, etc.
Investing in a flood policy now may save you money tomorrow. At The Roe Agency, we focus on protecting tomorrow so you can live today. For more information about Flood Insurance, contact The Roe Agency at (239)355-5773 or visit roeagencynaples.com.
Follow The Roe Agency on Instagram, Facebook, and Linkedin for the latest tips and community resources.