Florida condominium insurance is really two policies describing one building. The association buys a master policy covering the structure and common elements; each owner buys an HO-6 unit policy covering what the master policy leaves out. Every coverage question, from a burst pipe to a hurricane deductible assessment, comes down to which side of that line the damage falls on. In a state where the average homeowners premium ran $2,437 in 2021 NAIC data reported by the Insurance Information Institute, the highest figure in the national table, getting the split wrong is expensive in both directions: paying twice for the same walls, or discovering a gap when the ceiling is open.
What the master policy is for
The association's master policy insures the building envelope and the common elements: roof, exterior walls, elevators, hallways, pools and the structural systems that serve every unit. Its premium is funded through the assessments every owner pays, so each unit owner is already buying building coverage collectively before their own policy enters the picture. The master policy also carries the association's liability coverage for injuries in common areas. What it does not reach, by design, is the interior world of each unit, which is why the HO-6 exists at all.
Where the line falls inside the unit
Master policies differ in how deep into the unit they go. Some stop at the unfinished interior surfaces, leaving floor coverings, cabinets, countertops, interior fixtures and sometimes drywall to the owner's HO-6. Others reach further. The only trustworthy answer is in the association's governing documents and the master policy's own declarations, so read them, or ask the association's manager for the insurance section in writing, before setting your HO-6 dwelling limit. Owners who guess tend to copy a neighbor's number, and the neighbor usually guessed too.
Assessments, deductibles and the Florida stress test
Florida's storm exposure shows up on the association side as large wind deductibles and, after a serious loss, special assessments levied on every owner to cover what the master policy did not pay. Loss assessment coverage on the HO-6 exists for exactly this moment, picking up the owner's share of a covered assessment up to its own limit. Given how the state's premiums lead the national table, treating loss assessment as an afterthought endorsement is the most common way Florida condo owners end up paying a five-figure surprise out of pocket.
Flood stays outside both policies
Neither the master policy nor the unit owner's HO-6 covers flood, meaning rising water from storm surge or overwhelmed drainage. Associations can buy flood coverage for the building through the National Flood Insurance Program, and unit owners can buy their own contents and interior coverage the same way. In coastal Florida the sensible assumption is that both layers are needed, and FEMA's FloodSmart materials note that claims are regularly filed from outside the mapped high-risk zones as well.
Questions people ask about florida condominium insurance
Does the association's insurance cover the inside of my unit?
Usually only partly, and sometimes not at all. Master policies commonly stop at unfinished surfaces, leaving finishes, fixtures, cabinets and your belongings to your own HO-6. The master policy's declarations and the association's governing documents say exactly where the line falls.
What is loss assessment coverage?
An HO-6 coverage that pays your share of a special assessment the association levies after a covered loss, for example when a hurricane deductible or a coverage shortfall on the master policy is spread across the owners. In Florida it is one of the most important lines on the unit policy.
Why are Florida condo costs so high?
The same forces that put Florida's average homeowners premium at $2,437 in 2021 NAIC data reported by the Insurance Information Institute, the highest in the national table: hurricane exposure, litigation costs and reinsurance pricing. Associations feel it in the master policy premium and pass it through assessments.
Is flood covered by either policy?
No. Flood is excluded from both the master policy and the HO-6. Building-level and unit-level flood coverage are bought separately, typically through the National Flood Insurance Program.