AC-033 Condominium Property Insurance Coverage Reminders
NOTICE TO ALL CUSTOMERS
Conventional Condominium Property Insurance Coverage Requirements Reminders
Florida Capital Bank would like to remind customers of the Property Insurance Coverage Requirements for Condominium Projects which include but are not limited to the following:
- The policy must provide for claims to be settled on a replacement cost basis. Insurance policies that provide for claims to be settled at actual cash value or limit, depreciate, reduce or otherwise settle losses for less than a replacement cost basis is not acceptable.
- Acceptable policy coverage must be at least equal to 100% of the replacement cost value of the project’s improvements, including Common Elements and residential structures, as of the current insurance policy effective date. The source the lender uses to verify the coverage amount may be the property insurer, an independent insurance risk specialist, or other professional with appropriate resources to make such determination. This may include, but is not limited to, a statement from the insurer or other applicable professional, a replacement cost estimator, or an insurance risk appraisal.