Closing on hold due to insurance Help

[Carlos Oliva]

Hi all,

I am in the process of purchasing my first home (condo) in Orlando, FL. I have just been notified that closing is on hold due to verbiage on the HOA's HO-6 policy. In Florida HOA's are required to carry policies with replacement cost, Actual value is not allowed by law.

The HOA in which the unit I am purchasing provided their HO-6 policy to our lender and our lender is questioning the following as it appears on the policy:

Special Form

Replacement Cost (Actual Cash Value on Roofs)

The verbiage in parentheses is the one causing the hold and need for clarification. Have you all encountered this in Florida before? Any recommendations on how to proceed? Should we try to get in contact with the agent/company that issued the policy directly to get some clarification?

[Owen Rosen]

Is clarification needed or just confirmation?  Do they not understand what it means?

This is as clear as it can be.  Either they're going to be OK with ACV on roof damage or not...

This is not an uncommon condition especially for Florida and it's becoming more and more common on property insurance everywhere.