A condo on a barrier island is three purchases at once: the unit, a share of a building somebody else insures, and a set of rules you agree to before you get the keys. Most of what goes wrong on Tybee comes from assuming the association’s insurance covers more than it does, or discovering at the last minute that the lender needs the whole project approved. Both are checkable before you offer.
Key Takeaways
– The association buys the building’s flood policy. It does not cover your belongings.
– Flood insurance pays nothing for wind, and coastal Georgia policies can exclude wind too.
– Tybee’s Community Rating System class earns a 25% discount on National Flood Insurance Program premiums.
– A VA or FHA loan may need the project approved before you can close.
Who insures what in a condo?
Split the building from your things, because the policies do. The master flood policy “may only be purchased by a condominium owners’ association and is used to insure condominiums where 75% or more of the building’s floor area is for residential use” (FEMA).
That policy covers the structure and its systems: “The insured building and its foundation … The electrical systems … Central air-conditioning equipment … Furnaces, water heaters, heat pumps, and sump pumps,” plus permanently installed cabinets, panelling and carpet over an unfinished floor.
What it does not cover is anything of yours. FEMA is explicit: “Personal Property coverage, also known as contents coverage, is not included with residential condominium building property coverage,” and “Individual unit owners may want to purchase their own contents policies to protect personal property in their unit.”
Two more exclusions matter at the beach. Outdoor property is out, including “decks, patios, fences, seawalls, hot tubs, and swimming pools,” and so is “Additional living expenses such as temporary housing.” If the building floods and you cannot live in it, the flood policy does not put you in a hotel.
How much flood cover can a condo actually carry?
There are caps, and they stack in a way that surprises people. Building coverage cannot exceed “the lesser of: The building’s replacement cost value; or total # of units x $250,000,” and contents coverage tops out at “$100,000” (FEMA).
Then, per unit, there is a ceiling across both policies: “no more than $250,000 may be paid in combined benefits for a single unit under the Dwelling Form and the RCBAP. We will only pay for damage once” (FEMA, RCBAP policy form).
There is also a penalty that falls on owners when an association underinsures. FEMA will impose it “unless the amount of insurance applicable to the damaged building is: 1. At least 80 percent of its replacement cost; or 2. The maximum amount of insurance available for that building under the NFIP, whichever is less.” Ask for the association’s declarations page and check the building’s insured value against a current replacement cost, not against last decade’s.
One more gap worth pricing: flood policies exclude “The cost of complying with any ordinance or law requiring or regulating the construction, demolition, remodeling, renovation, or repair of property.” On an older building, code upgrades during a repair are the association’s problem, which means they are yours through assessments.
Does flood insurance cover hurricane damage?
No, and this is the single most expensive misunderstanding on the coast. The NFIP policy does not insure loss caused by “Theft, fire, explosion, wind, or windstorm” (FEMA). Flood is water. Wind is a different policy.
And in coastal Georgia, wind is not automatic on the other policy either. The state regulator tells owners to “check your policy to see if loss caused by wind is excluded under your Homeowners policy,” and if it is, to contact the Georgia Underwriting Association, adding that “Wind related losses are settled on an Actual Cash Value basis under policies issued by the Georgia Underwriting Association” (Georgia Office of Commissioner of Insurance). Actual cash value means depreciation comes off the claim.
Deductibles differ too: “Some policies have separate deductibles for hurricanes or wind losses” (Georgia Office of Commissioner of Insurance).
So the question to your insurance agent is not “am I covered for a hurricane”. It is three questions: who carries wind, what is the wind deductible, and does it settle at replacement cost or actual cash value.
What does Tybee’s flood rating do to the premium?
It helps, and it is confirmed by the program administrator rather than only by the city. FEMA’s Community Rating System list shows Tybee Island at Class 5, carrying a 25% discount on National Flood Insurance Program premiums (FEMA).
Two local rules shape what you can do with an older unit. The city applies “a one (1) foot freeboard requirement above the Base Flood Elevation,” and “Work which involves more than 50% renovation or repair will subject the home to all flood safety and FEMA building requirements” (City of Tybee Island). A major renovation of a ground-level unit can therefore trigger requirements the rest of the building does not meet.
Timing matters on the policy too: “There is a 30-day waiting period for most flood insurances,” and “Most homeowner policies do not cover flooding.” Our Tybee Island buying guide covers the flood side of the island in more detail.
Will your lender approve the building?
Possibly not, and this is the step that derails closings. For a VA loan, “VA maintains a list of approved condos. If the condo is not on the list, the project must be submitted to VA for review to ensure that it complies with VA requirements,” with a number to call on the same page (VA Buyer’s Guide).
FHA has a route for unapproved projects: “To be eligible for Single-Unit Approval, the unit must be located in a project that is not FHA-approved, that is complete and ready for occupancy, has at least five dwelling units and it is not a manufactured home” (HUD). HUD publishes a searchable list of approved projects you can check yourself before you write an offer.
Ask your lender to run the specific building early. Finding out in week three of a contract that the project needs a review is how a beach purchase misses its date. If you are buying with your VA benefit, our step-by-step Georgia VA loan guide sets out the order.
What documents should you read before closing?
The governing ones, and the financial ones. In Georgia, condominiums are governed by the Condominium Act at O.C.G.A. 44-3-70 through 44-3-117, and its section on liens, 44-3-109, addresses the association’s lien for assessments, the owner’s personal obligation for them, foreclosure, and a buyer’s right to a statement of what a unit owes.
Use that right. Ask, in writing, for a statement of the unit’s assessment position, and read alongside it:
- The declaration and bylaws, which decide what you may do with the unit, including whether short letting is allowed at all.
- The budget and the reserve position, because exterior repair on a salt-air building is expensive and gets funded by assessments.
- The association’s insurance certificate, checked against replacement cost for the coinsurance trap above, and checked for who carries wind.
- Minutes from recent meetings, which are where a coming special assessment usually appears first.
Georgia’s official code sits behind a paid sign-in, so the figures in that statute, including any interest, notice period or lien amount, are not quoted here. Your closing attorney can pull the current text and apply it to the specific unit.
If short-term rental income is part of the plan, note that the city “has revised its ordinances governing short-term vacation rentals and will implement a new permitting process for such properties in 2027” (City of Tybee Island), so the declaration is only half the answer. The Tybee Island community page keeps the current city links together.
Frequently asked questions
Does the condo association’s insurance cover my belongings?
No. FEMA states that contents coverage “is not included with residential condominium building property coverage,” and it encourages associations to tell owners to buy their own. The association insures the building and its systems. Your furniture, electronics and clothing are yours to insure, up to the $100,000 NFIP contents cap.
Does flood insurance cover hurricane wind damage on Tybee?
No. The NFIP policy excludes loss caused by “wind, or windstorm”. Wind comes from a homeowners policy, and coastal Georgia policies sometimes exclude it, in which case the state points owners to the Georgia Underwriting Association, where wind losses settle on actual cash value rather than replacement cost.
Can I use a VA loan to buy a Tybee condo?
Only if the project is VA-approved, or gets approved. VA keeps a list, and a project that is not on it must be submitted for review before the loan can proceed. Ask your lender to check the specific building before your offer, because the review adds time a contract may not allow.
What is the maximum flood payout on a condo unit?
Combined benefits across the association’s policy and your own are capped at $250,000 for a single unit, and FEMA will only pay once for the same damage. Building coverage for the whole project is capped at the lesser of replacement cost or the number of units times $250,000, with contents at $100,000.
What should I ask the association for?
A statement of the unit’s assessments, the declaration and bylaws, the current budget and reserves, the insurance certificate, and recent meeting minutes. Georgia’s Condominium Act gives a buyer a right to a statement of what a unit owes, and minutes are usually where a coming special assessment shows up first.
Before you write the offer
The pattern with island condos is that the cheap problems are visible and the expensive ones are in the paperwork: an underinsured building, a wind exclusion, a project the lender will not take, a reserve balance that cannot cover the next exterior repair. All four are answerable in the due diligence window if you ask early.
If you want a second set of eyes on a specific building’s documents and insurance position, get in touch and we will work through them with you and your lender.