Why Your Condo Association’s Master Policy May Be Inadequate — And How a Professional Insurance Appraisal Protects Everyone

Condo boards across Florida are facing a perfect storm: rising construction costs, stricter underwriting, lender scrutiny, and growing exposure to underinsurance. If your association hasn’t updated its master policy insurance appraisal recently, you may be relying on numbers that no longer reflect reality—and that can put the entire community at risk.

The Hidden Risk Most Boards Don’t See

Many associations depend on insurer-generated estimates or outdated appraisals. These shortcuts often miss critical components—labor escalation, ordinance & law costs, regional material pricing, and current code requirements. The result? Coverage limits that look adequate on paper but fall short when a loss occurs.

Underinsurance can mean:

  • Co-insurance penalties after a claim

  • Special assessments to unit owners

  • Loan approval issues (Fannie Mae/Freddie Mac compliance)

  • Disputes between unit owners, boards, and insurers

What a True Master Policy Insurance Appraisal Does

A professional insurance appraisal establishes Replacement Cost New (RCN) for the entire property, not market value. It answers the questions insurers and lenders care about:

  • What does it cost to rebuild today?

  • What portions are covered by the master policy?

  • Are limits sufficient to avoid co-insurance penalties?

  • Does the coverage align with bylaws and lender requirements?

Why Condo Boards Choose CFAC

At Central Florida Appraisal Consultants (CFAC), we specialize in condo and HOA master policy insurance appraisals—with a Florida-first, code-aware approach.

Our difference:

  • ✔ Independent, defensible replacement cost opinions

  • ✔ Florida construction cost expertise (materials, labor, code)

  • ✔ Clear reports boards, managers, insurers, and lenders can rely on

  • ✔ Experience with condos, townhomes, and multifamily properties

We don’t sell insurance—and we don’t rely on generic calculators. Our work is built to stand up in underwriting, audits, and claims.

When Should Your Association Update Its Appraisal?

  • Construction cost spikes (last 12–36 months)

  • Policy renewals with large premium increases

  • Changes to bylaws or coverage definitions

  • Lender or insurer requests for updated values

  • Major renovations or capital improvements

If any of these apply, it’s time to act.

Protect the Association. Protect the Owners.

A master policy insurance appraisal isn’t just a compliance task—it’s risk management. The cost of getting it right is small compared to the financial exposure of getting it wrong.

Talk with CFAC today to schedule a master policy insurance appraisal and gain confidence that your association is properly protected.

👉 Learn more and request an appraisal: https://cfappraisal.com
📞 Call CFAC to discuss your property and coverage needs.

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