What a Florida Condominium Association Must Insure, What Owners Must Insure, and How Windstorm and Flood Coverage Fit In

Jason Hamilton Mikes, JD, MBA
Founder & Managing Shareholder

• Published September 23, 2026
• Reviewed by Jason Hamilton Mikes, JD, MBA, September 23, 2026
• Florida Statutes as of July 1, 2026
• Applies to: Condominiums · Cooperatives · Hotel condominiums

A Florida condominium association must insure the condominium property for its full replacement cost, determined by an independent appraisal at least every 36 months, and its policy must cover windstorm. Section 718.111(11) says what the policy must cover, what it may exclude and leave to owners, who sets the deductible and how, and who repairs what after a loss. It also requires fidelity coverage for everyone who handles the association's money and authorizes directors' and officers', employee, and flood coverage. The insurance program is the largest line in most Southwest Florida condominium budgets and, after a hurricane, the largest determinant of whether the community recovers in a year or litigates for five.

What the association must insure

Section 718.111(11)(a) requires "adequate property insurance," based on the replacement cost of the property to be insured as determined by an independent insurance appraisal or update of a prior appraisal, obtained at least every 36 months. The policy must provide primary coverage for all portions of the condominium property as originally installed, or replacements of like kind and quality, in accordance with the original plans and specifications, and all alterations or additions made to the condominium property or association property. Windstorm must be included; associations in coastal wind pools obtain it through Citizens or the private market, and the statute permits groups of associations to obtain windstorm coverage together.

Paragraph (f) then carves out what the association's policy does not cover and leaves to owners: all personal property within the unit or limited common elements, and "floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments," and their replacements, located within the unit and serving only that unit. Everything else in the building, including drywall, windows, doors, and the systems that serve the unit, is the association's to insure.

What owners insure

Owners insure the excluded items and their contents through a unit owner's policy, the HO-6, which also typically provides personal liability coverage and loss assessment coverage for the owner's share of an association deductible or uninsured loss. The statute no longer mandates that owners carry an HO-6, but the declaration may, and most lenders do. Boards should confirm whether their declaration requires owner coverage, and if it does not, consider an amendment: after a loss, an uninsured owner's inability to rebuild the interior of a unit delays the reoccupation of the building for everyone.

Fidelity, liability, and D&O coverage

Paragraph (d) requires the association to insure or bond every person who controls or disburses association funds, including the manager and management company, in the amount of the maximum funds in the custody of the association or its manager at any one time. General liability coverage for the common elements is universal and required by every mortgage program. Directors' and officers' liability coverage is authorized rather than required, and no board should serve without it; it funds the defense of the owner suits, fair housing complaints, and employment claims that volunteer directors cannot pay for themselves. Workers' compensation applies if the association has employees, and umbrella coverage above the liability limits is inexpensive relative to the exposure a pool or a parking garage creates.

Deductibles

Florida property policies carry two deductibles: an all-other-perils deductible stated in dollars and a hurricane deductible stated as a percentage of the insured value, commonly two to five percent, which on a $40 million building is $800,000 to $2 million per hurricane. Paragraph (g) requires the board to establish the deductibles at a properly noticed board meeting, based on the level of available funds, including reserves, and the association's predetermined assessment authority, and consistent with industry practice for similar communities. The board should adopt a written deductible policy stating how the deductible will be allocated after a loss (as a common expense, or to the units whose damage generated it, as the statute permits), so that the allocation is not decided for the first time in the weeks after a storm. Our insurance claim documentation guide covers what happens when the deductible is triggered.

Windstorm

Windstorm coverage is required, expensive, and the coverage most often disputed after a hurricane. Boards should confirm each renewal that the policy has no windstorm exclusion or sublimit below the appraised value, that the ordinance-and-law endorsement is adequate to cover code upgrades the building department will require in a rebuild, that the policy's definition of "hurricane" and the deductible trigger are understood, and that the appraisal reflects current construction costs, which in Southwest Florida rose sharply after 2022. Wind mitigation inspections documenting roof shape, attachments, and opening protection reduce premiums, and the state's mitigation grant programs for condominiums, where funded, can pay for the improvements that earn the credits.

Flood

Property insurance does not cover flood, and section 718.111(11)(b) authorizes but does not require the association to carry it. In practice every coastal and low-lying building carries flood coverage because lenders require it for the units. The National Flood Insurance Program's Residential Condominium Building Association Policy insures the building for the lesser of its replacement cost or $250,000 multiplied by the number of units, with a separate contents limit, and applies a coinsurance penalty if the building is insured for less than 80 percent of its replacement cost. Buildings whose rebuilding cost exceeds the NFIP limit carry excess flood coverage from the private market or accept the gap knowingly. That decision, and the flood deductible, belong on the agenda of a noticed board meeting, in the minutes, and in the annual disclosure to owners, because owners whose units are flooded will ask why the coverage was what it was. Buildings in Special Flood Hazard Areas also face FEMA's substantial-damage rule, under which repairs approaching half of the structure's value trigger compliance with current elevation standards, a cost that ordinance-and-law coverage may or may not reach.

After a loss

Section 718.111(11)(j) allocates repair: the association repairs the property it must insure as a common expense, owners repair the excluded items, and an owner whose negligence or noncompliance caused the damage bears the uninsured costs. Claims must be noticed to the insurer within one year of the date of loss and supplemental claims within 18 months under section 627.70132. Assignments of policy benefits to contractors are prohibited for policies issued on or after January 1, 2023, and the association, not a contractor, should control the claim. Disputes over the amount of loss go to the policy's appraisal process, in which each side appoints an appraiser and the two select an umpire, before litigation. Our disaster recovery page and restoration contracts guide cover the rest.

The annual insurance review

The board should review the program with its agent at a noticed meeting before each renewal and confirm, in the minutes:

1. The appraisal date and whether an update is due within the 36 months.
2. Property limits equal to appraised replacement cost, with no windstorm sublimit and adequate ordinance-and-law coverage.
3. The all-other-perils and hurricane deductibles, and the adopted deductible allocation policy.
4. Flood coverage limits against rebuilding cost, and the excess flood decision.
5. Fidelity coverage equal to the maximum funds in custody, including the manager.
6. General liability, umbrella, D&O, and workers' compensation limits.
7. Certificates from the manager, contractors, and vendors naming the association as additional insured.

The review is where most insurance problems are found while they can still be fixed.

Contact Hamilton Mikes

Hamilton Mikes reviews condominium insurance programs, drafts deductible and casualty policies, and represents associations in coverage disputes and appraisals throughout Southwest Florida. Call 239-594-7227 or visit our Insurance page.