The board of directors of a condominium association in Florida must comply with the following Florida law.
Florida Statutes 718.111 section 11 reads as follows:
(11) INSURANCE.—In order to protect the safety, health, and welfare of the people of the State of Florida and to ensure consistency in the provision of insurance coverage to condominiums and their unit owners, this subsection applies to every residential condominium in the state, regardless of the date of its declaration of condominium. It is the intent of the Legislature to encourage lower or stable insurance premiums for associations described in this subsection. (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.
The Insurance Appraisal estimates the replacement cost of a damaged property. It does not include demolition, debris removal or depreciation. Replacement cost is higher than the cost of new construction. The appraiser conducting the insurance appraisal uses the Marshall and Swift/Boeckh software that is designed to calculate the replacement cost. This software provides the most accurate valuation, since it reflects additional costs of access in an improved area. Original Marshall & Swift cost estimates are based on new construction with unimpeded access to the building site. In the Boeckh version the appraiser can define the access ability considering other existing improvements, landscaping, and terrain.
(11) INSURANCE.—In order to protect the safety, health, and welfare of the people of the State of Florida and to ensure consistency in the provision of insurance coverage to condominiums and their unit owners, this subsection applies to every residential condominium in the state, regardless of the date of its declaration of condominium. It is the intent of the Legislature to encourage lower or stable insurance premiums for associations described in this subsection.
The Insurance Appraisal estimates the replacement cost of a damaged property. It does not include demolition, debris removal or depreciation. Replacement cost is higher than the cost of new construction. The appraiser conducting the insurance appraisal uses the Marshall and Swift/Boeckh software that is designed to calculate the replacement cost. This software provides the most accurate valuation, since it reflects additional costs of access in an improved area. Original Marshall & Swift cost estimates are based on new construction with unimpeded access to the building site. In the Boeckh version the appraiser can define the access ability considering other existing improvements, landscaping, and terrain.
