The setting
- Property type: Multi-unit condominium association
- Year of loss: 2024
- Region: South Florida
- Claim type: Storm-related damage to common elements and limited common elements
- Original carrier position: Claim denied; damage attributed to unit-owner responsibility
What the insurer argued
The master-policy carrier argued that the damaged elements, specifically, interior portions of balconies and storm-related exterior finishes, fell within the unit owners' HO-6 policy coverage rather than the association's master policy. The carrier cited policy language defining the coverage boundary narrowly.
What the association argued
The association's property manager retained Ocean Point to review the claim. A careful parse of the association's Declaration of Condominium, By-laws, and Fla. Stat. Ch. 718 established that:
- The balcony slabs were common elements under the Declaration
- The exterior finishes on the balconies were limited common elements subject to the master policy
- Florida condominium law (Ch. 718) allocates certain damages to the association by statute, regardless of policy language
What we submitted at mediation
- The association's Declaration of Condominium with relevant sections highlighted
- The association's By-laws
- Fla. Stat. Ch. 718 relevant provisions
- A coverage-boundary analysis document mapping each damaged element to its responsible party
- The master policy declarations and form
What the mediator observed
The coverage-boundary analysis, grounded in the association's own governing documents and Florida statute, left little room for the carrier's narrower interpretation. The mediator noted that the Declaration language controlled, not the carrier's preferred reading.
Outcome
The master carrier accepted responsibility for the common-element and limited-common-element damage. Unit owners separately pursued their HO-6 coverage for items within their responsibility. Total recovery to the association substantially exceeded the original $0 offer.
Lesson for other policyholders
In condo claims, governing documents control coverage boundaries, not just policy language. Associations and unit owners both benefit from reviewing the Declaration and By-laws before submitting a claim. Ocean Point handles both association-side and unit-owner-side condo claims, but not on opposite sides of the same claim.