- • Florida Statute § 718.111(11) draws the line: the master policy insures the structure "as originally installed" and common elements; the unit owner’s HO-6 insures everything installed inside the unit.
- • The master-policy hurricane deductible (often 2% to 5% of the insured value) passes through to owners as a special assessment. Loss-assessment coverage on each HO-6 is what absorbs an owner’s share.
- • The default loss-assessment limit is often just $1,000, nearly useless against a multimillion-dollar building’s deductible. Coastal owners commonly raise it to $10,000 or more.
- • A board has a fiduciary duty to pursue the association’s claim reasonably: document, notice promptly, and don’t accept a lowball that pushes cost onto owners.
- • Post-Surfside reforms (SB 4-D and later laws) changed reserve and structural-integrity obligations. Statutes here are drafted, not verified. Confirm the current law and your governing documents with counsel.
Master policy vs. unit owner, who insures what
The full statutory breakdown, including the deductible pass-through, loss-assessment mechanics, and the post-Surfside reserve laws, is in condo & HOA claims. The broader commercial hub covers other association property types, and business interruption applies to income-producing association facilities.
Four things a board owes its owners
Notice the claim promptly and in writing
The association’s notice obligation runs on the master policy’s terms. Document the date of loss and give written notice; keep a claim log of every carrier contact.
Document common-element and structural damage
Photograph and video the roof, envelope, and common areas before mitigation. The same evidence standard that wins a homeowner’s claim wins the association’s.
Understand the deductible before you assess
A 2% to 5% hurricane deductible on a large building is a six- or seven-figure number that becomes a special assessment. Owners will ask how it was calculated. Know the answer.
Don’t accept a lowball that shifts cost to owners
A board’s fiduciary duty includes pursuing the master-policy claim reasonably. An underpaid association claim becomes a larger special assessment on every owner.
An underpaid association claim is a bigger assessment
Every dollar the master-policy carrier underpays is a dollar the association funds through a special assessment on owners. That is what makes an association coverage dispute different from a single-family one. The fiduciary stakes multiply across every unit. When the carrier denies, disputes causation on the structure, or pays below the documented scope, the board should get a coverage read before it assesses owners.
A free attorney case review is available through our law firm partner, Halversen & Halversen, LLC, licensed in Florida and South Carolina. Reserve, structural-integrity, and governing-document questions arising from the post-Surfside reforms are legal questions too. The statutes summarized here are drafted, not verified, so confirm the current law and your association’s documents with counsel.
For condo & HOA managers, FAQ
Who pays for hurricane damage in a condo, the association or the unit owner?
Both, split by Florida Statute § 718.111(11). The association master policy insures the structure "as originally installed", roof, exterior and load-bearing walls, the building envelope, and common elements. The unit owner’s HO-6 insures everything installed inside the unit: floor, wall, and ceiling coverings, cabinets, appliances, water heaters, window treatments, personal property, and betterments. When a hurricane damages both, both policies respond, and the coordination between them is where disputes arise. Our condo & HOA claims guide walks the full allocation.
What is the deductible pass-through and how does it become a special assessment?
A Florida master policy typically carries a percentage hurricane deductible, often 2% to 5% of the insured value, which on a large building is a very large number. The association is responsible for that deductible, and it funds it (in whole or part) by levying a special assessment on unit owners. Each owner’s HO-6 loss-assessment coverage is designed to absorb their share, but only up to the limit on that policy, which is why the default $1,000 limit is often dangerously low.
What is loss-assessment coverage and what limit should owners carry?
Loss-assessment coverage is an HO-6 add-on that pays a unit owner’s share of a special assessment for a covered common-area loss, including the master-policy hurricane deductible passed through. The default limit is frequently just $1,000, which is nearly useless against a multimillion-dollar building’s deductible. Coastal owners commonly raise it to $10,000 or more. This is general information, not advice for a specific policy. Owners should confirm terms with their agent.
When should a board bring in an attorney?
When the master-policy carrier denies or underpays the association’s claim, disputes causation on the structure, or delays past the deadlines, the board is looking at a coverage dispute with fiduciary consequences for every owner. That is the point to get a free attorney case review. Reserve, structural-integrity, and governing-document questions from the post-Surfside reforms are also legal questions. Confirm the current law with counsel.
- Fla. Stat. § 718.111(11), condominium insurance ↗, The master-policy / unit-owner allocation and the primary-coverage rule.
- Fla. Stat. § 627.70132, notice of property insurance claim ↗, Notice and supplemental-claim deadlines that apply to the association’s claim.
- Fla. Stat. § 624.155, civil remedy (bad faith) ↗, The statutory path when the master-policy carrier’s handling crosses into bad faith.
- S.C. Code Title 38, Chapter 59, improper claim practices ↗, South Carolina claim-handling standards for association claims.
Independent informational resource, not a law firm and not legal advice. Condominium statutes, the deductible pass-through, loss-assessment mechanics, and the post-Surfside reforms are drafted for education and have not been verified by counsel. Confirm the current law and your governing documents with an attorney before acting.
Master-policy carrier denied or underpaid the building?
Send the master policy, the denial or estimate, and the damage documentation. Our law firm partner gives a straight read on the association’s coverage position, before the board assesses owners for the gap.
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