Florida Community Association Manager Practice Exam

What does Florida Statutes say about the Florida Catastrophe Fund's reimbursement for losses caused by flooding?

1. It’s allowed under certain conditions

2. It’s fully reimbursable

3. It’s prohibited

4. It has no regulations on flooding claims

The correct answer is: It’s prohibited

Florida Statutes specify that the Florida Catastrophe Fund does not provide reimbursement for losses specifically caused by flooding. This aligns with the general guidelines and limitations established for the fund, which focuses primarily on catastrophic events such as hurricanes and other natural disasters, but explicitly excludes flooding as a covered cause of loss. Understanding this provision is crucial for community association managers and property owners, as it directly affects the insurance and financial planning for properties in flood-prone areas. This exclusion underscores the importance of obtaining separate flood insurance coverage to adequately protect against flood-related damages, as the Catastrophe Fund is not a safety net for those specific risks.