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Brown & Brown Insurance Agency has recently made the following articles available to us. They contain useful information about insuring your condominium. Agents’ Education BULLETIN #20 August 6, 2003In This Issue: Condominium Insurance Changes – Tech Tip – ARM Program Condominium Insurance Changes By David Thompson During the 2003 legislative session Senate Bill 592 made changes to the statutes (Specifically 718-111) that address how insurance coverage must be provided under the condominium master policy and the individual unit owner policies. The change applied to any new or renewal insurance policy effective January 1, 2004. Below are the significant highlights of the bill: The changes apply to every condominium in the state, regardless of the date of its declarations. In condominiums where there is only one unit in a free standing building the association is not required to insure that building if the condominium declarations require the unit owner to obtain adequate insurance on the condominium property. The board may satisfy the requirement to obtain "adequate insurance" if the policy contains a reasonable deductible. There is no definition of "reasonable". The master policy shall provide primary coverage for the following: o All portions of the condominium property located outside the units;o The condominium property located inside the units as such property was initially installed, or replacements thereof of like kind and quality and in accordance with the original plans and specifications or, if the original plans and specifications are not available, as they existed at the time the unit was initially conveyed;o All portions of the condominium property for which the declaration of the condominium requires coverage by the association.The word "building" does not include the following, thus the master policy will not cover these items, even if located inside a unit:
Associations may amend their declaration without regard to mortgagee approval of the amendments affecting insurance requirements. Unit owners should continue to insure interior additions and upgrades which are not of like kind of quality to the original interior building items. Any policy issued or renewed to a unit owner on or after January 1, 2004 shall provide that coverage is excess over any other policy covering the same property. Unit owner policies shall be without rights of subrogation against the condominium association. The individual unit owner shall insure real or personal property within the unit that is excluded from the association policy. The association must maintain e-mail addresses of unit owners who consent to receive notices in that manner if the association elects to send notices in that manner. The most significant aspect of this statute change is that certain items of building property are not clearly the insurance responsibility of the unit owner and are not covered by the association policy. Some unit owners who carry a low limit of building coverage on their unit owner policy will likely need to increase that coverage to be adequately protected. There is nothing that prohibits an association from mandating that unit owners insure more than what the statutes dictate. It’s not uncommon for associations to require unit owners to insure items such as front doors and screened rooms and this can continue under the revised statutes. The January 1, 2004 date is significant because the old statute referred to a 1986 date and a 1992 date. Depending on the dates of the condominium declarations (bylaws) it was possible that the master policy would cover items such as the floor coverings, electrical fixtures, appliances, and water heaters to name a few. With the statutory change those 1986 and 1992 dates are eliminated and there is one "common playing field" when it comes to what the master policy will not cover. It’s now safe to say that all of the 20,000 or so condominium associations in the state all fall under the new law and the "property not covered list" is the same for all associations. Again though, individual associations can (and likely do) have bylaws which mandate that the unit owner is responsible for the property listed above plus more. That’s why it’s critical that someone (unit owner) read the bylaws and see what the unit owner responsibility is. What this means for the unit owner is that increased coverage may be required under the unit owner policy. When advised of the fact it’s likely that the first call will be to the insurance agency with the questions of, "How much coverage should I carry?" That answer is the same today as it was when the first condominium policy was written decades ago, "Whatever limit you think is appropriate." The agency should not select a limit of insurance. Only after reading the statute and the condominium declarations can a unit owner know what his insurance responsibility is. The amount of coverage should be based on:
With the new statute it’s important for agency staff to understand the scope of the change. Existing unit owners and associations may need to be contacted to make any needed adjustment to policies. Condominium coverage can be confusing and it’s important the proper coverage be in place. You can learn more about insuring your condominium by clicking the link below: |
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VOLUSIA COUNTY TOURIST DEVELOPMENT TAX PLEASE READ IF YOU ARE
LEASING YOUR UNIT TO OTHERS. |
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| The
County of Volusia administers the tourist development tax and is surveying all condominium
complexes to ensure compliance. This tax
applies to every person who rents, leases or lets for consideration any living quarters or
accommodations in a hotel, apartment hotel, motel, resort motel, apartment, apartment
motel, rooming house, mobile home park, recreational vehicle park of condominium for a
term of 6 months or less. These taxes are
used to advertise and promote tourism in Volusia County.
If you rent short term, you are required to register with the County of Volusia and
the Florida Department of Revenue. The tourist tax rate increased from 5% to 6% on all
occupancies on and after July 1, 2003. The
6.5 percent sales tax should also be collected and reported to the Florida Department of
Revenue. The tourist development tax
may apply to you and your property. If you
have any questions, please contact the County of Volusia at 386 254 4668. The County has published the
“14 Most Frequently Asked Questions about the Tourist Development Tax”, as
follows:
The
state of Florida’s Department of Revenue collected this tax prior to April 1, 1990. The County of Volusia saves processing costs and
also returns the tax revenue to the community faster through a local collection program.
April
1, 1990.
All
facilities that are rented for six months or less are subject to the Tourist Development
Tax. These facilities include hotels, motels,
single-family homes, apartments, condominiums, timeshares, mobile home parks, rooming
houses, and campgrounds.
The
property owner collects and remits the tax to the County of Volusia unless a management or
real estate firm files for them.
The
reporting period is one month; for example, April 1 to April 30, May 1 to May 31.
Taxes
are remitted monthly and tax returns must be filed even if taxes are not due, unless
“inactive” status has been requested for several months of no rentals. Tax returns must be received or postmarked no
later than the 20th of the month following the close of the reporting period.
For example, the April reporting period begins April 1 and the tax return is due to the
County of Volusia’s Tourist Tax Office no later than May 20.
Yes,
unless you request that your account be made “inactive” for the months of no
rentals. “Inactive” accounts are
not required to file returns. Your request
must be made in writing and the months of no rentals must be stated.
The
tax return is due on the following business day. Tax
returns must be received or postmarked by the 20th or other applicable due
date.
The
collection allowance is compensation to the owner for collecting the tax. The formula is 2.5 percent of the first $1,200 of
taxes due. State law limits this allowance to
a maximum of $30. The collection allowance
applies only when returns are filed on time.
Yes. Pursuant to State statute, penalties are imposed
for filing late or not filing. Penalties are
assessed at the rate of 10 percent per month of the taxes due, up to a maximum of 50
percent of the total taxes due. The minimum
penalty is $10. Interest is determined by the
market interest rate adjusted at six-month intervals (January 1 and July 1). Rates can be obtained by calling 386 254 4668. Interest is assessed from the date of the return
is due until payment is remitted. The post
office postmark, not a postage meter date, is considered the payment date.
Yes.
Tax returns are subject to an audit. Property
owners will be given advance notice of an audit.
Tax returns must be kept on file for five years.
Chapters
125 and 212 of the Florida statutes, Department of Revenue Rules and Regulations 12A-1.060
through 12A-1.061 and Volusia County Ordinances 78-2, 84-11, 87-21 and 87-23, as amended,
list the guidelines for administering, regulating and governing these taxes.
If the cleaning fees are required for rental of the unit, they are taxable and should be included with receipts. |
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