Florida condo buildings and flood
Condo Association Flood Insurance in Florida
RCBAP is the NFIP policy a condo association buys for the whole building. It covers up to $250,000 times the number of units.[1]
Type the building's address to see its flood zone and whether a lender will require a policy.
Check my addressReviewed by a licensed, independent insurance agent.
Own a business or apartment building too? Read the Florida commercial flood guide.
What is an RCBAP?
RCBAP stands for Residential Condominium Building Association Policy. The condo association buys one policy for the whole building. To qualify, at least 75 percent of the building's floor area must be residential.[2]
The policy covers the building itself, including the units and the fixtures and improvements inside them. It belongs to the association, not to each owner.[2]
How much can the association buy?
For the building, the NFIP limit is $250,000 times the number of units.[1] It can never be more than what it would cost to rebuild the building.[3]
For contents, the limit is $100,000.[3] That covers only things the owners own together, or things the association owns and uses to run the building. It does not cover what is inside each owner's unit that the owner owns alone.[2]
What is the 80 percent rule?
The association should insure the building for at least 80 percent of what it would cost to rebuild, or the NFIP maximum for the building, whichever is less. If it carries less, the claim payment on the building is cut. The rule applies to the building only.[2]
An example from the NFIP policy
The policy itself gives this example.[2]
| Cost to rebuild the building | $250,000 |
|---|---|
| Insurance it should carry (80 percent) | $200,000 |
| Insurance it carried | $180,000 |
| Flood damage | $150,000 |
| Policy pays at most | $134,500 |
The building carried 90 percent of what it should. So the policy paid 90 percent of the damage, less the $500 deductible. The association paid the other $15,500.
Does Florida require condo flood insurance?
Florida law requires every condo association to carry adequate property insurance. For flood, the statute says an association "may" buy it.[4] So Florida law does not require a condo association to buy flood insurance.
A lender is a different matter. If a unit loan is on a building in a high-risk flood zone, a federally regulated lender must require flood insurance.[5] Ask the lender how the master policy counts toward that.
Florida law also says the building's replacement cost must be checked at least once every 3 years.[4]
Check my addressWhat does the unit owner still need?
The owner's belongings are not on the master policy.[2] Florida law also keeps the association's property policy off things like the owner's floor, wall and ceiling coverings, appliances, water heaters, built-in cabinets and countertops.[4]
A unit owner can buy their own NFIP policy. But the RCBAP and the owner's policy together can pay no more than $250,000 for one unit, and the same damage is paid only once.[6]
The master policy also pays only for direct physical flood damage. It does not pay lost rent, loss of use or living costs while the building is repaired.[2]
How much has the NFIP paid on Florida condo buildings?
Since late 2016, FEMA's flood program has paid about $3.22 billion on 15,949 flood claims from Florida condo association buildings.[7]
The storms behind the biggest condo building claims[7]
- Hurricane Ian 4,542 claims $1.52B
- Hurricane Helene 5,229 claims $1.22B
- Hurricane Milton 2,627 claims $201.8M
- Hurricane Irma 1,375 claims $92M
Where the most was paid on condo association buildings: Lee County, $1.22 billion (4,010 claims); Pinellas County, $625 million (1,930 claims); Collier County, $440.4 million (2,388 claims); Sarasota County, $256.4 million (1,663 claims); and Manatee County, $155.9 million (970 claims).[7]
What does your condo building's address need?
The report shows the flood zone, whether a lender will require a policy, and the claims record near the building. If you want options, a licensed, independent insurance agent compares them for you.
Questions about condo association flood insurance in Florida?
What is RCBAP?
RCBAP stands for Residential Condominium Building Association Policy. It is the NFIP flood policy a condo association buys for the whole building. The building must be at least 75 percent residential. [2]
What does an RCBAP not cover?
It does not cover what unit owners own on their own, such as their furniture and clothes. Like every NFIP policy, it pays only for direct physical flood damage. It does not pay lost rent, loss of use or living costs while the building is repaired. [2]
What is the RCBAP 80 percent rule?
The association should insure the building for at least 80 percent of what it would cost to rebuild, or the NFIP maximum, whichever is less. If it carries less, a building claim is cut. The rule applies to the building, not to contents. [2]
Does a unit owner need their own flood policy?
For their belongings, yes, if they want them covered. The master policy does not cover them. A unit owner can also buy building coverage, but the RCBAP and the owner's policy together can pay no more than $250,000 for one unit. [2][6]