FL Condo & HOA Insurance Requirements

What Florida law and lenders require for condo/HOA master policies: wind, flood, fidelity, D&O. Avoid coverage gaps that trigger special assessments.

Frequently Asked Questions

What insurance is a Florida condo association legally required to carry?

Under Florida Statute 718.111(11), every condominium association must carry property insurance based on replacement cost, general liability insurance covering common elements, and fidelity bonding for anyone who controls or disburses association funds. The property insurance must cover all condominium property as originally installed per the original plans and specifications.

How often must a condo association get an insurance appraisal in Florida?

Florida law requires an independent insurance appraisal at least every 36 months (3 years) per Section 718.111(11)(j). The appraisal must determine the full insurable replacement cost of all condominium property that the association is required to insure. This ensures coverage keeps pace with construction costs.

What are the SB 4-D milestone inspection requirements?

SB 4-D requires milestone structural inspections for condominium buildings that are 3 or more stories and at least 25 years old (or 15 years old if located within 3 miles of the coastline). Associations must also complete a Structural Integrity Reserve Study (SIRS) every 10 years and fully fund reserves for major structural components. Reserve waivers for SIRS components are no longer permitted after December 31, 2024.

What happens if a condo association does not carry the required insurance?

Board members can face personal liability for failing to maintain required insurance coverage. The association may be unable to obtain financing or refinancing for common element repairs. Unit owners may face difficulty selling their units since lenders typically require proof of adequate association insurance. In the event of a loss, the entire cost falls on unit owners through special assessments.

Does the condo association's insurance cover individual unit interiors?

The association's master policy covers all condominium property as originally installed per the original plans and specifications. However, it specifically excludes personal property within units, floor/wall/ceiling coverings, electrical fixtures, appliances, water heaters, built-in cabinets, countertops, and window treatments. Unit owners need their own HO-6 policy to cover these items and any improvements or upgrades they have made.

Who pays the insurance deductible when there is a claim on the master policy?

Under Florida Statute 718.111(11)(f), all property insurance deductibles and any damages in excess of coverage limits are considered a common expense of the association. This means all unit owners share the cost through assessments. However, if the damage was caused by the negligence or intentional conduct of a specific unit owner, the association can charge that owner directly. The association can also opt out of the common expense allocation with a majority vote.

Get a free quote or call (904) 900-5063 — Atesa Risk Advisors, independent Florida insurance brokerage.