Condo Hurricane Damage in Florida: What the Association Pays and What the Unit Owner Pays

Short answer

The association insures and repairs the building as originally built. The unit owner insures and repairs the finishes, fixtures, and contents inside the unit.

Under section 718.111(11)(f), the association's master policy must cover the condominium property as originally installed, including the structure, roof, exterior walls, windows and doors in most buildings, and common elements. It must exclude personal property and the interior items Florida law assigns to the owner: floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments. Those are the owner's to insure, usually under an HO-6 policy.

The master policy's hurricane deductible is a common expense of the association, under 718.111(11)(j). If the association does not have the money in reserves or operating funds, it can come back to owners as a special assessment, which is where an HO-6 loss assessment coverage endorsement matters.

What the association's master policy covers

• The building structure: foundation, framing, slabs, and load-bearing walls.
• The roof and the building envelope: exterior walls, balconies, and in most declarations the windows and sliding doors. Check your declaration, because some assign windows and sliders to the owner.
• Common elements: hallways, stairwells, elevators, lobbies, pools, parking structures, and mechanical systems.
• Drywall and the original-construction portions of the unit, unless your declaration says otherwise.

What the unit owner covers

Section 718.111(11)(f)(3) requires the master policy to exclude the following, and says such property and any insurance on it is the responsibility of the unit owner: all personal property within the unit or limited common elements; floor, wall, and ceiling coverings; electrical fixtures; appliances; water heaters; water filters; built-in cabinets and countertops; and window treatments.

In practice: if Isaias blew out a slider and rain soaked a unit, the association handles the slider (in most buildings) and the drywall, and the owner's HO-6 handles the flooring, the cabinets, the furniture, and the TV. Under 718.111(11)(g), owners are responsible for reconstructing the parts they are required to insure, and the association can assess an owner for that cost if the association does the work.

The hurricane deductible, twice

Most Gulf-front association master policies carry a percentage hurricane deductible, often 3 to 5 percent of the building's insured value, and sometimes more. On a building insured for $30 million, a 5 percent deductible is $1.5 million. Under 718.111(11)(j), the deductible and damage beyond coverage are a common expense, which means every owner shares it, through reserves or a special assessment.

Your HO-6 has its own hurricane deductible for your unit claim. And many HO-6 policies offer loss assessment coverage, which can pay your share of an association assessment caused by a covered loss, up to a limit. Many owners carry the default limit, which may be far less than a big building assessment. Read your declarations page before the board votes.

Where owners get caught in the middle

• The association's adjuster scopes the building but not the interior finishes, and the owner's HO-6 carrier says it is the association's problem. Both claims need to be filed and each carrier needs to see the other's scope.
• Water that entered through the roof or a common-element failure and damaged units below. The source matters for coverage, so document where it came from.
• Owner upgrades, like improved flooring or custom cabinets. Those are generally the owner's responsibility to insure.
• Timing. The board's claim can take months. The owner's HO-6 claim should not wait for it. File both now.
• Flood. If storm surge came into ground-floor units or the garage, the association's flood policy, if it has one, covers the building, and the owner needs separate flood coverage for contents.

What boards and owners should do now

Boards: report the claim to the master carrier and the flood carrier in writing, document every building and common element before repairs, get the policy's deductible and coinsurance terms in front of the board, and communicate with owners about which repairs the association is handling. Florida requires adequate property insurance under 718.111(11)(a), and a board has a duty to pursue the association's claim properly.

Owners: file your HO-6 claim now, photograph your unit before cleanup, keep receipts, and ask the association in writing what it is claiming and repairing so you know what your policy needs to cover. If a special assessment is coming, check your loss assessment coverage.

Commonly Asked Questions

Related

• Condo association hurricane claims in Florida →
• How hurricane deductibles work →
• Board insurance obligations under 718.111(11) →
• Special assessments after hurricane damage →
• Hurricane Isaias damage claims: what to do now →
• How CCG works with condo and HOA boards →

About the Author

James Coyne

Florida Licensed Public Adjuster, License W482618. Founder of Coyne Commercial Group, Firm License G350978, Sanford, Florida. Represents commercial property owners, condominium and HOA associations, and homeowners on insurance claims statewide.

Sources

• Fla. Stat. § 718.111(11) : condominium association insurance, master policy coverage and exclusions, deductibles, and unit owner responsibility
• Fla. Stat. § 627.70132 : notice of claim deadlines
• ISO Homeowners 6 Unit-Owners Form (HO 00 06): Coverage A and loss assessment

This page is for general information, not legal advice or a coverage determination. Confirm any deadline or obligation against your policy, your association’s governing documents, and current Florida law.