Condos and associations in Florida: what the association covers and what falls to you

Master policy and unit policy: who covers what

In a condominium, protection is split between two policies. Section 718.111 requires the association's property insurance to cover all portions of the condominium property as originally installed, or replacement of like kind and quality, in accordance with the original plans and specifications¹.

The same law excludes from the association's policy the personal property within the unit and a list of items located within the unit's boundaries that serve only that unit: floor, wall and ceiling coverings, electrical fixtures, appliances, water heaters and water filters, built-in cabinets and countertops, and window treatments. The law states expressly that such property and any insurance on it are the unit owner's responsibility¹.

The unit owner policy (HO-6) and loss assessment coverage

The unit owner policy, known as HO-6, covers what the law leaves to the owner: the finishes and belongings inside the unit, improvements, personal liability and, depending on the policy, additional living expenses if the unit becomes uninhabitable.

Section 627.714 requires Florida condominium unit owner policies to include at least $2,000 of loss assessment coverage for all assessments made as a result of the same direct loss to the property, with a deductible of no more than $250 per direct property loss². If a deductible was already applied to another loss to the unit from the same event, no separate deductible applies to this coverage². The law also requires the owner's policy to apply as excess over other policies covering the same property².

Deductibles and special assessments

Under section 718.111, the association policy's deductibles and damages above its coverage are a common expense¹. In practice, after a hurricane, the association can charge owners a special assessment to cover the master policy deductible. The board sets those deductibles, which must be consistent with industry standards and prevailing practice for similar communities in the area, and may base them on available funds, including reserves¹.

Your policy's loss assessment coverage responds to assessments arising from a covered loss. It is not designed to pay for the reserves or repairs required by the inspections and studies explained below. That is why, before buying a unit, you should review the association's budget, its reserves and any assessment already approved or under discussion.

Milestone inspections

Section 553.899 requires a milestone inspection for buildings three habitable stories or more in height that are subject, in whole or in part, to the condominium or cooperative form of ownership³. The inspection must be performed by December 31 of the year the building reaches 30 years of age, and every 10 years after that³. The law lets the local authority require it at 25 years if local circumstances justify it, such as proximity to salt water³.

Phase one is a visual examination by a licensed architect or engineer; phase two, which may include testing, is required only if signs of substantial deterioration are found³. The association must distribute the inspector's summary to unit owners within 45 days and post it in the building³.

The structural integrity reserve study (SIRS)

Section 718.112 requires residential condominium associations to have a structural integrity reserve study at least every 10 years for each building three habitable stories or higher⁴. The study must cover, among other items, the roof, the structure, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior painting, and windows and exterior doors⁴.

Associations existing on or before July 1, 2022 and controlled by unit owners had to complete the study by December 31, 2025, or by December 31, 2026 if done together with the milestone inspection⁴. For budgets adopted on or after December 31, 2024, owners can no longer vote to provide no reserves, or less reserves than required, for those items⁴. There are limited exceptions: since July 1, 2025, an association that completed a milestone inspection in the previous 2 calendar years may, with approval of a majority of the total voting interests, temporarily pause or reduce reserve contributions for up to two consecutive annual budgets, for budgets adopted on or before December 31, 2028, to fund the repairs the inspection recommends⁴. For many families, that means higher dues or special assessments.

Homeowners associations (HOAs) for single-family homes

In a community of single-family homes with a homeowners association, the split is usually different: each owner insures the entire house with a homeowners policy, and the association insures the common areas, such as the clubhouse, pools or entrances. The exact rules depend on each community's declaration and governing documents, so read them with your attorney.

If you serve on an association's board, your liability as a director is a separate topic. Our guide on board service and family foundations explains the legal protections and directors and officers insurance.

How to reduce the risk

These steps help avoid surprises, both in your unit and in the building:

• Ask the association for the master policy certificate and confirm its hurricane deductible¹.
• Check that your HO-6 covers the finishes and appliances the law leaves to you¹.
• Ask what loss assessment limit your policy carries, beyond the legal minimum².
• Before buying, ask for the milestone inspection summary and the reserve study^3,4.
• Install leak sensors and automatic shutoff valves, especially if the unit sits empty.
• Shut off the unit's water when you travel for long periods.
• Photograph the unit's improvements and contents, and keep the receipts.
• Attend the association's budget meetings to learn about planned reserves and assessments.

If you want to review how your unit policy and your association's policy fit together, write to me.