Condo Owners in Florida: What the Association Covers vs. Your HO-6

Your condo association buys a master policy with everyone’s dues, so why buy a policy of your own? Because Florida law draws a line through your unit: the association insures one side, and the other side is yours. Here is where s. 718.111(11) puts that line, who pays when something goes wrong, and what to ask before the next storm. (Milestone inspections and reserve studies have their own SIRS guide.)

The association’s side: the building as originally installed

The rules apply to every residential condominium in Florida, no matter when its declaration was recorded. The association must carry adequate property insurance, and the replacement cost of the property must be set by an independent appraisal, or an update of one, at least once every 3 years. The master policy must give primary coverage to:

• All portions of the condominium property as originally installed, or replacements of like kind and quality, following the original plans and specifications.
• Alterations or additions the association itself approves for the common elements or association property under s. 718.113(2).

The board sets the master policy’s deductibles at a board meeting, based on available funds, including reserves, or its power to assess owners. A building deductible can end up on your statement.

Your side: what the master policy must leave out

The same statute requires the association’s policy to exclude these items, and their replacements, when they are inside your unit and serve only your unit:

• All personal property in the unit or in limited common elements.
• Floor, wall and ceiling coverings, such as tile, wood, carpet and wallpaper.
• Electrical fixtures.
• Appliances, water heaters and water filters.
• Built-in cabinets and countertops.
• Window treatments: curtains, drapes, blinds and their hardware.

That property, and any insurance on it, is the unit owner’s responsibility. The Florida Department of Financial Services describes the HO-6 the same way: it covers your personal property and the building items the association’s policy does not insure, plus personal liability (DFS toolkit).

Upgrades: the part many buyers miss

The association does not have to pay to repair improvements that benefit only your unit and were not among the developer’s standard finishes in every unit, no matter who installed them (s. 718.111(11)(n)). Bought a remodeled unit? The previous owner’s stone counters are your exposure, not the building’s.

DFS advises raising your policy limits when you finish interior upgrades. When an item is covered by both policies, the association’s policy should pay first, and Florida law makes every unit owner’s policy excess over other insurance on the same property (s. 627.714(4)).

After a leak or a storm: who pays for what

When an insurable event damages property the association must insure, the association repairs it as a common expense. The master policy’s deductible, and any damage above its limits, are common expenses too, shared by all owners. The exceptions are where owners get surprised:

• Negligence or broken rules. If you, your family, tenants, guests or invitees caused the damage through intentional conduct, negligence, or not following the declaration or the rules, you pay the repair costs insurance does not cover, including damage to other owners’ belongings.
• Late reporting. The association does not have to pay for a loss you knew or should have known about but reported only after its claim was settled or denied as late.
• Opt-out. By a majority of all voting interests, an association may opt out of these rules and follow its declaration instead, recording a notice of the vote.
• Rebuilding. The association handles reconstruction; you need the board’s prior written consent and permits to do it yourself, and the association can assess you for rebuilding the parts you must insure.

Say the supply line under your sink fails and soaks the unit below. Whether your HO-6 liability coverage responds depends on whether you are legally responsible and on your policy’s terms, which is why liability limits matter; owners with more at stake may also look at an umbrella policy.

Loss assessment: the $2,000 floor

If the master policy leaves part of a loss unpaid, such as a large hurricane deductible, the board can assess every owner. Florida requires each unit owner’s policy to include at least $2,000 of loss assessment coverage per direct loss, with a deductible of no more than $250 (s. 627.714). Three details matter:

• The loss must be a type your own policy covers. DFS gives an example: if your HO-6 excludes flood and rising water damages the seawall, your policy will not pay that assessment.
• The limit that counts is the one in force one day before the loss. Changes made on or after that day do not apply to it.
• If a deductible already applies to your own damage from the same event, no second deductible applies to the assessment.

An assessment to build reserves or fix aging concrete is a different situation; our SIRS guide explains why. For deadlines after a storm, see the hurricane claim timeline.

Flood is a separate conversation

The statute allows, but does not require, association flood insurance. Under the NFIP, the association’s building policy (the RCBAP) covers personal property only if it is owned in common or by the association (44 CFR Part 61, App. A(3)%20to%20Part%2061)), so your furniture needs its own flood coverage. A unit owner can also buy an NFIP Dwelling Form policy with building coverage even when the building has an RCBAP: combined payments for one unit are capped at $250,000, and the same damage is paid only once. That policy can pay your share of a flood loss assessment, but not one that comes from the association’s deductible (App. A(1)%20to%20Part%2061)). More on our flood insurance page and in our king tides guide.

Questions to ask your board, and yourself

The association’s current insurance policies are official records, and it must make them available within 10 working days of a written request (s. 718.111(12)). Citizens also reminds condo owners that they can ask the board for a copy of the association policy (Citizens). With the master policy and your declaration in hand, ask:

1. What are the master policy’s hurricane and other deductibles, and how would the board pay them?
2. Does the association carry flood insurance, and on what?
3. Has the association opted out of the statutory repair-cost rules? If so, what does the declaration say?
4. Which finishes in my unit are not the developer’s standard originals?
5. Is my HO-6 interior limit enough to replace floors, cabinets and fixtures today?
6. Is my loss assessment limit above the $2,000 minimum, and does it fit the size of the master deductible?

If you cannot get the documents, the DBPR Division of Florida Condominiums, Timeshares and Mobile Homes answers owner questions at (850) 488-1122 (DBPR).