Florida Condo Insurance, Explained: Master Policy vs. Your HO-6

Quick answer

The association's master policy insures the building and common elements as originally installed. By statute it excludes the unit interior: floor, wall, and ceiling coverings, appliances, water heaters, cabinets, countertops, and window treatments, even developer-installed ones. Owners need an HO-6 policy with real improvements coverage and $25,000 to $50,000 of loss assessment protection.

Condominium insurance in Florida is layered. The association carries a master policy covering the building and common elements; each owner carries a separate policy covering what the master policy does not. Between those layers sits a gap that catches unprepared owners every year, because the boundary is set by statute and by your declaration, not by what seems fair after a loss. Section 718.111(11), Florida Statutes governs the association’s side.

Key facts

Every residential association must carry adequate property insurance on the building, regardless of what an older declaration says.
Replacement cost must be determined at least once every 3 years, based on an independent appraisal or an update of one.
By statute the master policy excludes the unit interior: floor, wall, and ceiling coverings, appliances, water heaters, built-in cabinets and countertops, and window treatments, even if the developer installed them.
Flood is almost always a separate policy, and wind coverage is often written separately in Florida.
Hurricane deductibles of 2 to 10 percent of insured value are common; on a $20 million building, a 5 percent deductible is the first $1 million of damage.
Standard HO-6 policies often default to $1,000 of loss assessment coverage. Most Florida owners should carry $25,000 to $50,000.

What the master policy covers, and where it stops

The master policy covers the condominium property as originally installed, or replacements of like kind and quality, per the original plans. It does not cover your unit’s interior. Section 718.111(11)(f) carves out floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, built-in cabinets and countertops, and window treatments, even when they came with the unit. The basic vinyl flooring the developer installed and the hardwood you upgraded to are both your insurance responsibility. Owners who assume the association will restore their unit to its current condition discover this after the water is already in the drywall.

The HO-6 policy every owner should carry

The standard unit owner policy is the HO-6, sometimes called walls-in coverage. Florida statute does not require one, but most lenders and many declarations do, and going without one leaves your personal property, interior improvements, and assessment exposure completely unprotected. A sound Florida HO-6 includes personal property coverage based on a real inventory, improvements and betterments coverage reflecting what your upgrades actually cost, at least $300,000 of personal liability, additional living expense for temporary housing, and water damage coverage including sewer and drain backup where available. Review it annually and after any renovation.

Loss assessment coverage: the cheap protection everyone skips

When a loss exceeds the association’s coverage or falls inside its deductible, the shortfall reaches owners as a special assessment. Loss assessment coverage on your HO-6 reimburses you for that assessed amount up to the policy limit. The default limit is often just $1,000, and after a major hurricane, per-unit assessments of $10,000 to $50,000 are not unusual. Raising the limit to $25,000 or $50,000 typically costs very little and is one of the best value adjustments a Florida condo owner can make.

Deductibles are the association’s problem until they are yours

Master policy hurricane deductibles are set as a percentage of insured value, and the board must plan how a worst-case deductible would be funded before the storm, not after. As an owner, ask two questions at budget season: what is our hurricane deductible in dollars, and what is the plan to cover it? If the answer is a shrug, the real answer is a special assessment, which is exactly what your loss assessment coverage is for.

Why insurers now ask about your building’s engineering

Since Surfside, many carriers require an engineering condition letter before renewing coverage on older or taller buildings: current condition of the structure and envelope, open items from milestone inspections and reserve studies, and a remediation timeline. Associations that maintain their buildings and can document it renew at better rates; those that cannot are pushed to the residual market. Chapter 6 of the book covers the whole insurance picture, including the claims process and managing cost in Florida’s market.

Common questions

Does the master policy cover water damage inside my unit?

It covers the building elements it insures, not your interior finishes or belongings. If a pipe leak ruins your flooring and cabinets, those come back through your HO-6 policy. The declaration and s. 718.111(11) set the exact boundary.

Is an HO-6 policy legally required?

Florida statute does not require it, but most lenders do, many declarations do, and going without one leaves your property, liability, and assessment exposure unprotected. Treat it as mandatory in practice.

What is loss assessment coverage?

It reimburses you when the association passes a covered loss to owners as a special assessment, such as a hurricane deductible. Defaults are often only $1,000; raising the limit to $25,000 or $50,000 is inexpensive and one of the best value moves a Florida condo owner can make.

This guide is educational, not legal or engineering advice. Statutes change and every building and declaration is different. Confirm how the law applies to your association with your attorney and a licensed professional. Figures current as of July 2026.