In a recent article from The CAI Law Reporter it was reported that the courts in Florida awarded a condominium amounts outside of the coverage provided by the insurer based on condominium law that states what the condo is required to carry and what they should carry for coverage.
The decision was since turned over, but here is the rub. Are we supposed to carry all the coverage that we are required to on our master deed and cc&r”s? Are we supposed to adhere to the various state codes? Or can a condominium board use logic and judgement to get the best coverage at the most reasonable pricing that fits the budget.
I vote for the latter. let the board decide what is best and reasonable. Although, if you think you need coverage for something, you probably do, so buy it.
In no way do I think a court can make an insurer provide coverage for something that a board did not buy. The court overturning that decision appears to be the right one.