The minimum premium for this endorsement is $25.00.
This endorsement may be given with respect to either or both an Owner’s Policy and/or Loan Policy and contains SEVEN (7) forms of affirmative coverage as follows:
1)Paragraph 1 insures that the insured unit together with its common elements is part of a validly created condominium pursuant to the Florida Condominium Act. Therefore, if the Condominium has been validly created and the unit and its common elements properly described, this affirmative coverage may be given.
2)Paragraph 2 insures that the condominium documents comply with the requirements of the Florida Condominium Act to the extent necessary to convey valid title to the insured unit. Therefore, an error in the documents creating the condominium does not prevent providing this affirmative coverage unless such error adversely affects title to the insured unit.
3)Paragraph 3 insures against existing violations of restrictive covenants in the condominium documents which restrict the use of the insured unit and its common elements and that such restrictive covenants do not contain any provisions which will cause a forfeiture or reversion of title. The term “restrictive covenants” as used in this affirmative coverage does not include any covenant, condition or restriction (i) relating to obligations of any type to perform maintenance, repair or remediation on the insured unit or its common elements, or (ii) pertaining to environmental protection of any kind or nature, including hazardous or toxic matters, conditions or substances, except to the extent that a notice of a violation or alleged violation affecting the insured unit or its common elements has been recorded in the public records at the date of the policy and is not excepted in Schedule B. As a result of this coverage, it is recommended to confirm with the condominium association that there are no present violations of the restrictions as part of the required confirmation that all assessments are paid in full.
4)Paragraph 4 insures that there are no unpaid condominium assessments as of the date of the policy. Therefore, an estoppel letter from the condominium association confirming that all assessments are paid in full is required to provide this affirmative coverage.
5)Paragraph 5 insures that the insured unit and its common elements are separately assessed for real property taxes. In Florida, once the condominium has been validly created, real property taxes are statutorily assessed as a separate parcel and, therefore, this affirmative coverage may be given.
6)Paragraph 6 insures against the obligation to remove any improvements existing at the date of the policy because of present encroachments. Therefore, if the survey contained in the Declaration of Condominium, as amended by any amendments, reflects that any condominium improvements encroach upon an easement, underwriting approval should be obtained prior to providing this affirmative coverage.
7)Paragraph 7 insures against the failure of title resulting from a right of first refusal to purchase the insured unit which was exercised or could have been exercised at the date of policy. Therefore, if the Declaration of Condominium requires consent to the purchase of the insured unit or a right of first refusal, evidence of compliance with such requirement must be obtained and recorded in order to insure title and provide this affirmative coverage.
