If you sit on a condo board in South Florida, insurance is probably the biggest bill on your budget and the one owners complain about most. Here are straight answers to the questions boards ask us most often, for associations in Boca Raton, Miami-Dade, Broward and Palm Beach counties.
What does a condo association policy actually cover?
The association's master policy usually covers the building itself and the common areas: roof, structure, hallways, pool, clubhouse, elevators, and the association's liability if someone is hurt on the property. What is inside each unit depends on the governing documents and Florida law. Unit owners carry their own HO-6 policy for the rest. Ask us to read your declaration alongside the policy so you know exactly where the line sits.
Why did our premium jump?
Hurricane losses, reinsurance costs, older buildings and rising rebuild costs have pushed condo rates up across Florida. Some of it you cannot control. Some of it you can: roof age and condition, updated wiring and plumbing, a current inspection record and accurate replacement cost values all change how an underwriter sees your building.
How do the milestone inspection and structural integrity reserve study (SB 4-D) affect insurance?
After the Surfside collapse, Florida now requires milestone inspections and structural integrity reserve studies (SIRS) for many condo buildings of three stories or more. Underwriters increasingly ask whether these are done and what they found. A completed inspection with repairs on schedule helps. Missing paperwork or deferred repairs can limit your options or raise your price. Check the current deadlines and your building's requirements with your attorney or engineer.
What is the wind or hurricane deductible, and why does it matter?
Many Florida policies use a percentage deductible for named storms, not a flat dollar amount. On a large building a 2% to 5% deductible is a very large number. Your board should know that figure and whether the association has the reserves to cover it.
Does the association need flood insurance?
Standard property policies do not cover flood. If your building is in a high-risk flood zone and has a federally backed mortgage, flood coverage may be required. Even outside those zones, South Florida buildings flood. Ask what a flood quote would cost and compare it with what you would have to pay out of pocket.
Do board members need directors and officers (D&O) coverage?
Yes. Board members can be sued over decisions on assessments, repairs, rules and elections. D&O coverage protects the board and the association. Florida condo law also puts new duties on boards, so this is not a place to cut costs. Review limits and exclusions each year.
What else should we have?
General liability for the common areas
Fidelity (crime) coverage for people who handle association money
Workers' compensation if the association has employees
Umbrella liability for extra limits
Equipment breakdown for elevators, pumps and HVAC
When should we start the renewal?
Early. For a condo association, start 90 to 120 days before the policy ends. That gives time to gather inspection reports, roof details and updated valuations, and to market the account properly.
How do we get a quote?
Call or message us with your declaration, current policy, loss runs and any recent inspection or reserve study. We will tell you what is realistic and what to fix first. Call (516) 476-6742 or use the contact page.
This article is general information, not legal advice or a coverage guarantee. Coverage depends on your policy and your carrier.