Why Does A Townhome Require A Wind Mitigation And A Condo Usually Doesn't
In Florida, the requirement for wind mitigation inspections for townhomes and not for condos generally comes from the differences in ownership and responsibility structures between these two types of properties. Here are some key points to understanding these differences:
Ownership Structure: In a condominium, individuals own their specific units but the building's exterior, roof, and common areas are typically owned and maintained by the condo association. In townhomes, the owner usually is responsible for both the interior and exterior of the unit, including the roof.
Insurance Policies: Due to this ownership structure, the insurance policies differ. Condo owners typically have a Condominium Unit Owners Insurance Policy that covers the interior of the unit and personal property inside. The condo association generally holds a separate policy for the exterior and common areas of the building. Townhome owners, on the other hand, often have a standard homeowners insurance policy that covers both the interior and exterior of their unit.
Wind Mitigation Inspection Incentives: For townhomes, wind mitigation inspections can directly impact the owner's insurance premiums, as these inspections assess how well their specific unit can withstand wind damage. Condo owners, whose policies usually don't cover the exterior of the building, might not directly benefit from this type of inspection for insurance discount purposes. Instead, it's the condo association's responsibility to consider wind mitigation for the building's exterior, which could affect the association's insurance policy.
Regulations and Lender Requirements: Regulations and lender requirements might also play a role. Individual lenders might have different requirements for townhomes and condos based on their risk assessment models.
Risk Assessment: Finally, the risk assessment for a standalone structure like a townhome can be different from that of a condo in a larger building. The construction standards and wind resistance capabilities might vary significantly, leading to different insurance and inspection requirements.
These are general guidelines and can definitely vary based on specific locations, insurance companies, and the governing documents of the condo association.
Rule of Thumb For a Townhome, you should expect to have both a Wind Mitigation and a Four Point Inspection completed. For a Condo, you should expect to need a Four Point Inspection completed for your insurance. Both of these have recently been required by Insurance Companies on properties approximately 5 years or older. This will depend on which insurance company you use and their requirements.
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