Florida Statute 718 Insurance Requirements: What Every HOA Board Member Must Know (2026 Guide)
By Ricardo Alonso, Founder, Atesa Risk Advisors · March 4, 2026 · Updated September 27, 2026
Key Takeaways
- Florida Statute 718.111(11)(a) says every condominium association "shall have adequate property insurance", whatever its declaration requires [1].
- Replacement cost "must be determined at least once every 3 years, at minimum", by an independent insurance appraisal or an update of one [1].
- The association's master policy must exclude floor, wall and ceiling coverings, appliances, water heaters and built-in cabinets inside a unit; the unit owner insures those [1].
- Chapter 718 covers condominiums. Homeowners associations fall under Chapter 720, which has no comparable property insurance mandate [9].
Florida Statute 718.111(11) requires every residential condominium association to carry adequate property insurance regardless of its declaration, determine replacement cost at least once every 3 years, and insure or bond everyone who controls or disburses its funds [1]. Homeowners associations fall under Chapter 720, which has no comparable property insurance mandate [9]. HB 913 (Chapter 2025-175, effective July 1, 2025) rewrote the insurance paragraph [8].
What Florida Statute 718 Actually Requires
Section 718.111(11) of the Florida Condominium Act establishes the insurance obligations for every residential condominium in the state except timeshare condominiums. 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This means even if your association's governing documents are silent on insurance — or contain outdated language — the statute applies anyway. Your board must use its best efforts to obtain and maintain adequate property insurance to protect the association, the association property, the common elements, and the condominium property it is required to insure (FS 718.111(11)(d)) [1].
The Three-Year (36-Month) Appraisal Rule
One of the most important requirements is the mandatory insurance appraisal cycle. Under Section 718.111(11)(a)2., the replacement cost of the insured property must be determined at least once every 3 years, through an independent insurance appraisal or an update of a previous one [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, and HB 913 rewrote it in 2025, changing the clock from "every 36 months" to "every 3 years, at minimum" [8].
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 in paragraph (f).
Association Master Policy Covers:
| Coverage Area | Examples |
|---|---|
| Building structure | Exterior walls, roof, foundation, load-bearing walls |
| Common elements | Lobbies, hallways, stairwells, elevators, parking structures |
| Association property | Pool areas, clubhouse, fitness center |
| Building systems in common areas | Plumbing, electrical, HVAC serving common areas |
Unit Owner Is Responsible For:
| Coverage Area | Examples |
|---|---|
| Personal property | Furniture, electronics, clothing, valuables |
| Floor, wall, and ceiling coverings | Tile, carpet, hardwood, paint, wallpaper |
| Electrical fixtures | Light fixtures, ceiling fans, outlet covers |
| Appliances | Refrigerator, dishwasher, washer/dryer, oven |
| Water heaters and water filters | Hot water heater, filtration systems |
| Built-in cabinets and countertops | Kitchen cabinets, bathroom vanities, granite/quartz counters |
| Window treatments | Curtains, drapes, blinds, hardware |
This distinction is directly from Section 718.111(11)(f) of the Florida Statutes: the owner's list covers items inside a unit that serve only that unit, and everything else "as originally installed" stays on the master policy [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, which pays toward an assessment levied after a covered loss — 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 after a loss event.
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:
- Individuals authorized to sign checks on behalf of the association
- The president, secretary, and treasurer
- Anyone else who controls or disburses association funds
Fidelity bonding protects the association (and by extension, all unit owners) from theft or misappropriation of funds. The policy or bond must cover the maximum funds in the custody of the association or its management agent at any one time. Homeowners associations have a parallel rule in Chapter 720, which members may waive each year by majority vote (FS 720.3033(5)) [9].
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].
Strengthened Insurance Requirements
HB 913 restated that every condominium association must have adequate property insurance, and changed the wording so the amount may be based on an independent replacement-cost appraisal, with replacement cost determined at least every three years. The statute also provides 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, a loss estimate produced by an accepted hurricane model [1][2].
Structural Integrity Reserve Studies (SIRS)
A SIRS is a study of the reserve funds needed for future major repairs and replacement. Under HB 913 and the earlier SB 4-D [5][6]:
- Buildings with three or more habitable stories must complete a Structural Integrity Reserve Study at least every 10 years
- The SIRS deadline was extended from December 31, 2024 to December 31, 2025
- The study must include a reserve baseline funding plan that keeps the reserve cash balance above zero
- An officer or director 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]:
| Change | Details |
|---|---|
| Reserve item threshold | Increased from $10,000 to $25,000 (with annual inflation adjustments; $25,675 for 2026) [10] |
| Funding methods | Special assessments, lines of credit, or loans now permitted (majority vote of the total voting interests required) |
| Pooling method | Boards can now use pooling accounting for SIRS reserves |
| Pause option | Boards can pause reserves if the local building official declares the entire building uninhabitable because of a natural emergency |
| Milestone inspection delay | Associations completing milestone inspection can delay SIRS for up to 2 consecutive budget years |
Milestone Inspections
The milestone inspection requirements (structural inspections of aging buildings) now apply to condominium and cooperative buildings that are three or more habitable stories in height. Local enforcement agencies must report inspection data to the Department of Business and Professional Regulation (DBPR) on or before December 31, 2025, and each December 31 after that. Repairs for substantial structural deterioration must commence within 365 days after the local enforcement agency receives a phase two inspection report [7].
Annual Financial Statement Requirements
HB 913 also changed the financial transparency rules that directly affect insurance planning [2]:
- The deadline for delivering annual financial reports to unit owners was extended from 120 days to 180 days after the fiscal year end; completion is still due within 90 days
- An officer or director must sign an affidavit evidencing compliance with the delivery requirement
- Bank statements and ledgers are now classified as official records
- Associations managing 25 or more units must post approved board minutes from the preceding 12 months on the association's website, and new records within 30 days [1]
Budget Rules That Affect Insurance Costs
If your proposed annual budget requires assessments above 115% of the prior year's assessments, the board must simultaneously propose a substitute budget that excludes discretionary spending [2]. Unit owners must consider it at the budget meeting and may adopt it by a majority of all voting interests. Rising insurance costs do not trigger this requirement: insurance premiums are excluded from the 115% calculation (FS 718.112(2)(e)2.b.) [6].
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, electrical fixtures, and owner-added improvements.
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. In a Florida residential condominium the statute, not the declaration, sets the insurance line [1].
Critical Action Item: Review your association's declaration of condominium for what the statute leaves to it: repairs when there is no insurable event, any recorded opt-out from paragraph (j), and owner-insured freestanding buildings under paragraph (e). These directly affect how claims are processed.
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 and prevailing practice for similar communities in the same locale
- Based on the level of available funds, including reserves, and predetermined assessment authority
- Established at a board meeting held in the manner set forth in Section 718.112(2)(e)
Under paragraph (j), property insurance deductibles are a common expense of the condominium, typically passed to unit owners through a special assessment [1]. This is why adequate loss assessment coverage on individual HO-6 policies is so important. The statutory minimum is $2,000 [3]; Citizens writes exactly $2,000, and the private policies we place go up to $10,000. On the standard form the part of an assessment caused by the association's deductible is commonly capped at $1,000.
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.
2. Review your declaration of condominium. Read it against the "walls-in" vs. "walls-out" line in Section 718.111(11)(f), which controls for insurance.
3. Complete your SIRS if required. Buildings with three or more habitable stories need one, and an officer or director must sign the acknowledgment affidavit.
4. Verify fidelity bonding coverage. Confirm that all persons who control or disburse association funds are covered, as required by Section 718.111(11)(h).
5. Communicate with unit owners. Send annual reminders about HO-6 coverage, including the statutory minimum of $2,000 in loss assessment coverage.
FAQ for Florida Condo and HOA Board Members
Q: What are the HOA insurance requirements in Florida?
A: Homeowners associations are governed by Chapter 720, which has no property insurance mandate. It requires insurance or a fidelity bond for people who control or disburse association funds, unless members waive it by annual vote [9].
Q: What are the condo insurance requirements in Florida?
A: A condominium association must have adequate property insurance, determine replacement cost at least once every 3 years, and insure or bond the people who handle its funds [1]. A unit owner's policy must include at least $2,000 of loss assessment coverage [3].
Q: How often does a Florida condo association need an insurance appraisal?
A: At least once every 3 years. Section 718.111(11)(a) requires replacement cost to be determined through an independent insurance appraisal or an update of a previous one [1]. HB 913 changed the wording in 2025 from every 36 months to every 3 years [8].
Q: Does Florida Statute 718.111(11) require unit owners to buy an HO-6 policy?
A: No. Section 718.111(11) makes the excluded items inside the unit, and any insurance on them, the unit owner's responsibility. It does not order the owner to buy a policy [1].
Q: Do rising insurance premiums trigger the 115% substitute budget rule?
A: No. Section 718.112(2)(e) excludes insurance premiums and required reserves when the board tests whether assessments exceed 115% of the prior year's [6].
Related Reading
- Does a Beachfront Condo's Liability Policy Cover a Fall on the Beach? The North Florida Board's Guide (2026) — the statute mandates property insurance, not general liability; here is where the liability policy comes from and what it covers on the sand.
- Florida Condo Milestone Inspections in 2026: The Schedule, the Insurance Fallout, and What a Failed Phase 1 Means — the FS 553.899 inspection schedule and how underwriters read the report.
How Atesa Risk Advisors Can Help
Navigating Florida's condominium insurance requirements 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: we shop 40+ A-rated carriers, run coverage gap analyses against the statutory requirements, explain the fine print, and handle claims advocacy after a loss.
An independent broker who handles Florida condo & HOA insurance can confirm your master policy, liability, and fidelity coverage meet Statute 718 and shop it across the market.
Need an association insurance review? Get your free quote and consultation at atesariskadvisors.com/get-quote or call (904) 900-5063.
Sources
[1] Florida Statutes Section 718.111, The association (2026)
[2] Florida Senate, Bill Summary: CS/CS/HB 913, Condominium and Cooperative Associations (2025)
[5] Florida Senate, SB 4-D (2022), Building Safety, enrolled text
[6] Florida Statutes Section 718.112, Bylaws (2026)
[8] Chapter 2025-175, Laws of Florida (CS/CS/HB 913)
[9] Florida Statutes Chapter 720, Homeowners' Associations (2026)
[10] Florida DBPR, Reserve Threshold
Ricardo Alonso is the Founder of Atesa Risk Advisors, a Florida independent insurance agency. Licensed 2-20 General Lines Agent and 2-15 Health & Life Agent, with a Master of Liberal Arts in Finance from Harvard University.