Florida Statute 718 Insurance Requirements: What Every HOA Board Member Must Know (2026 Guide)

If you serve on a Florida condominium or homeowners association board, understanding your insurance obligations is not optional — it is a legal requirement. Florida Statute 718, known as the Florida Condominium Act, spells out exactly what coverage your association must carry, what unit owners are responsible for, and the financial safeguards your board must maintain. With the passage of HB 913 in 2025, these requirements were significantly strengthened.

This guide breaks down what every board member needs to know, in plain language, with references to the actual statutes so you can verify everything yourself.

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What Florida Statute 718 Actually Requires

Section 718.111(11) of the Florida Condominium Act establishes the insurance obligations for every condominium association in the state. The law is clear: every condominium association must maintain adequate property insurance, regardless of what the declaration of condominium says [1].

This means even if your association's governing documents are silent on insurance — or contain outdated language — the statute overrides them. Your board is legally required to carry property insurance that covers the full insurable value of all condominium property, including common elements and association-owned property.

The 36-Month Appraisal Rule

One of the most important (and frequently overlooked) requirements is the mandatory insurance appraisal cycle. Under Section 718.111(11)(a), the replacement cost of the insured property must be determined at least once every 36 months — that is, every three years — through an independent insurance appraisal [1].

If your board has not had a professional appraisal done in the last three years, you may be out of compliance with state law. This is not a suggestion; it is a statutory requirement that was reinforced by HB 913 in 2025 [2].

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What the Association Must Insure vs. What Unit Owners Must Insure

One of the most common sources of confusion — and disputes — in Florida condominiums is the dividing line between what the association's master policy covers and what the unit owner is responsible for. Florida Statute 718.111(11) draws this line clearly.

Association Master Policy Covers:

Unit Owner Is Responsible For:

This distinction is directly from Section 718.111(11)(a) of the Florida Statutes [1]. Unit owners need an HO-6 condo insurance policy to cover these items. Under Florida Section 627.714, every unit owner's residential property policy must include at least $2,000 in loss assessment coverage — this is a state law minimum, not optional [3].

Board Member Tip: Many unit owners do not realize they need their own insurance policy. Consider sending an annual reminder to all unit owners explaining what the master policy covers and what it does not. This can reduce disputes and special assessments after a loss event.

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Fidelity Bonding: Protecting Association Funds

Section 718.111(11)(h) requires that every association maintain fidelity bonding or insurance covering all persons who control or disburse association funds [1]. This includes:

• Board members who sign checks or authorize payments
• Property managers with access to association accounts
• Bookkeepers, treasurers, and any employee handling money

Fidelity bonding protects the association (and by extension, all unit owners) from theft or misappropriation of funds. Given the large sums that flow through association accounts — reserve funds, maintenance fees, special assessments — this coverage is essential.

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HB 913: What Changed in 2025

Governor DeSantis signed House Bill 913 into law on June 23, 2025, making sweeping changes to Florida's condominium regulations [4]. For board members, the insurance-related changes are significant.

Strengthened Insurance Requirements

HB 913 reinforced that every condominium association must provide adequate property insurance based on replacement cost. The bill clarified that for groups of three or more community associations, coverage may be satisfied by obtaining insurance sufficient to cover the probable maximum loss for a 250-year windstorm event [2].

Structural Integrity Reserve Studies (SIRS)

One of the most impactful changes involves reserve funding tied to building safety. Under HB 913 and the earlier SB 4-D [5]:

• Buildings with three or more habitable stories must complete a Structural Integrity Reserve Study
• The SIRS deadline was extended to December 31, 2025
• The study must include a reserve baseline funding plan that ensures the cash balance never drops below zero
• Board officers and directors must sign an affidavit acknowledging receipt of a completed SIRS

Reserve Funding Flexibility

HB 913 also provided some relief for boards struggling with the financial burden of new requirements [2]:

Milestone Inspections

The milestone inspection requirements now apply to condominium buildings that are three or more habitable stories in height. Local enforcement agencies were required to report inspection data to the Department of Business and Professional Regulation (DBPR) by October 1, 2025 [2]. Repairs identified in a phase two inspection must commence within 365 days.

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Annual Financial Statement Requirements

HB 913 also changed the financial transparency rules that directly affect insurance planning [2]:

• The deadline for completing annual financial reports was extended from 120 days to 180 days after the fiscal year end
• An officer or director must sign an affidavit confirming compliance with financial reporting requirements
• Bank statements and ledgers are now classified as official records
• Board minutes from the preceding 12 months must be posted on the association's website and updated within 30 days of any change

Budget Rules That Affect Insurance Costs

If your proposed annual budget exceeds 115% of the prior year's assessments, the board must simultaneously prepare a substitute budget that excludes discretionary spending [2]. This substitute budget must be presented to unit owners for approval. Since insurance premiums are often the largest line item in a condo budget, rising insurance costs can trigger this requirement.

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The "Walls-In" vs. "Walls-Out" Question

Every board member should understand the concept of "walls-in" versus "walls-out" coverage, because it determines how insurance claims are handled after a loss.

"Walls-out" (Association responsibility): The master policy covers the building structure, common elements, and shared systems. Think of everything from the drywall out — the exterior walls, roof, foundation, and common area infrastructure.

"Walls-in" (Unit owner responsibility): The unit owner's HO-6 policy covers everything from the drywall in — interior finishes, personal property, appliances, fixtures, and improvements.

However, this is where it gets complicated. Some association declarations use "bare walls" coverage, where the association covers only the raw structure. Others use "all-in" coverage, where the association covers original fixtures and finishes installed by the developer.

Critical Action Item: Review your association's declaration of condominium to understand exactly where the master policy coverage ends and unit owner responsibility begins. This dividing line varies by association and directly affects how claims are processed.

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Deductible Responsibilities

Under Section 718.111(11)(c), the board has the authority to determine insurance deductibles [1]. However, the law requires that deductibles must be:

• Consistent with industry standards for similar communities in the same geographic area
• Based on available funds, including reserves or predetermined special assessment authority
• Established at a properly noticed board meeting per Section 718.112(2)(e)

When a covered loss occurs and the association must pay the deductible, this cost is typically passed to unit owners through a special assessment. This is why adequate loss assessment coverage on individual HO-6 policies is so important — the statutory minimum of $2,000 is often insufficient for large deductibles common in Florida's current insurance market.

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5 Action Items for Board Members

1. Schedule an insurance appraisal. If your last appraisal was more than 36 months ago, you are potentially out of compliance. Contact your insurance broker to arrange an updated replacement cost appraisal.

2. Review your declaration of condominium. Understand the "walls-in" vs. "walls-out" dividing line specific to your association. This determines claim handling and unit owner responsibilities.

3. Complete your SIRS if required. Buildings with three or more habitable stories must have a completed Structural Integrity Reserve Study. Officers and directors must sign the acknowledgment affidavit.

4. Verify fidelity bonding coverage. Confirm that all persons who control or disburse association funds are covered by fidelity bonding or insurance, as required by Section 718.111(11)(h).

5. Communicate with unit owners. Send annual reminders about HO-6 policy requirements, including the statutory minimum of $2,000 in loss assessment coverage. Many unit owners are uninsured or underinsured.

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How Atesa Risk Advisors Helps Condo & HOA Boards

Navigating Florida's condominium insurance requirements takes more than just finding a policy — it takes an advisor who understands the statutes, the market, and the specific risks facing your association. At Atesa Risk Advisors, we work with HOA and condo boards across Florida to:

• Shop 40+ A-rated carriers to find the best coverage at competitive rates
• Conduct coverage gap analyses to identify where your current policies may fall short of statutory requirements
• Explain the fine print so every board member understands what is covered and what is not
• Handle claims advocacy when you need someone in your corner after a loss

Whether your association needs a full insurance review, help understanding HB 913 compliance, or simply a second opinion on your current coverage, we are here to help.

Get a Free Association Insurance Review →

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Sources

1. Florida Legislature, Florida Statutes Section 718.111 — The Condominium (2025). leg.state.fl.us

2. Florida Senate, CS/CS/CS/CS HB 913 — Condominium and Cooperative Associations, Bill Summary (2025). flsenate.gov

3. Florida Legislature, Florida Statutes Section 627.714 — Condominium Unit Owner Coverage (2025). leg.state.fl.us

4. Office of the Governor, Governor DeSantis Signs Legislation Delivering Relief to Condo Owners (June 23, 2025). flgov.com

5. Florida Senate, SB 4-D — Structural Integrity Reserve Study Requirements (2022). flsenate.gov

6. Florida Department of Business and Professional Regulation, Division of Condominiums, Timeshares, and Mobile Homes. myfloridalicense.com

7. Florida CFO, Property Insurance Changes — HB 913 Summary. myfloridacfo.com