Condo Association Insurance Claims After a Storm: A Guide for Florida Boards

When a storm damages a condominium, the board is suddenly managing a complex insurance claim on behalf of every owner. There’s a master policy to work through, a large deductible, unit owners asking questions and contractors calling.

This guide covers the basics Florida condominium boards and property managers should know to keep a master-policy claim organized from day one.

General information for Florida condominiums under Chapter 718. Homeowners’ associations (Chapter 720) and cooperatives follow different rules. For legal questions about your governing documents, assessments or board duties, consult the association’s attorney.

Start with what the association insures

Florida requires every residential condominium association to carry adequate property insurance (Fla. Stat. § 718.111(11)(a)). Policies issued or renewed since January 1, 2009 must provide primary coverage for:

• All portions of the condominium property as originally installed, or replacement of like kind and quality, per the original plans and specifications
• Alterations or additions made under § 718.113(2)

They must exclude personal property inside units and limited common elements, plus floor, wall and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments that are inside a unit and serve only that unit (§ 718.111(11)(f)). Those are the unit owner’s responsibility and are typically insured under their HO-6 policies.

Practically, that means the association’s claim usually includes the roof, exterior walls, structure, common areas, building systems and drywall, while owners claim their interiors and contents separately.

Deductibles: decided before the storm, felt after it

The board sets the master policy deductibles at a properly noticed board meeting, based on available funds and predetermined assessment authority (§ 718.111(11)(c)). After a covered loss, deductibles and damage above coverage are generally a common expense (§ 718.111(11)(j)), except where a unit owner’s negligence or rule violation caused the damage.

Owners often ask whether their own policy will help with a special assessment. Florida requires HO-6 policies to include at least $2,000 of loss assessment coverage (Fla. Stat. § 627.714). Letting owners know about this early, and about its notice deadline, is a helpful service from the board.

Deadlines that apply to the association

• Notice of claim: within 1 year after the date of loss for a new or reopened claim and 18 months for a supplemental claim (Fla. Stat. § 627.70132). For hurricanes, the date of loss is the landfall date.
• Owner loss assessment claims: the later of 1 year after the date of loss or 90 days after the board votes to levy the assessment, but no later than 3 years after the date of loss (§ 627.70132(4)). The date of the board’s vote matters to every owner.
• Late owner reports: the association isn’t required to pay for repairs as a common expense if a unit owner knew or should have known about damage and didn’t report it until after the association’s claim was settled or denied as untimely (§ 718.111(11)(j)4.). Tell owners, in writing, to report damage quickly.

A practical first-week plan for boards

1. Safety and mitigation first. Secure the building, address hazards and authorize emergency drying, tarping or board-up as needed. Keep every invoice.
2. Notify the carrier promptly and get the claim number and the assigned adjuster’s name and license number.
3. Designate one point of contact (a board member or the manager) for the insurer, contractors and owners.
4. Send owners a notice asking them to report unit damage in writing by a set date, with photos, and reminding them to contact their own HO-6 insurer.
5. Document building-wide. Roof, each elevation, windows and doors, common areas, building systems and every affected unit. Drone and moisture-mapping documentation is often worth it on larger buildings.
6. Pull the documents: the master policy with all endorsements, the declaration’s maintenance and insurance provisions, the most recent replacement-cost appraisal (Florida requires one at least every 3 years under § 718.111(11)(a)2.) and prior repair records.
7. Be careful with contracts. Read any contract that assigns benefits or takes a percentage of insurance proceeds, and have the association’s attorney review it.

Common issues on association claims

• Scope disputes over roof systems, building envelopes and how far water traveled.
• Matching and uniform appearance of exterior finishes, windows or roofing.
• Building code upgrades required by the local building department, and whether the policy’s ordinance or law coverage applies.
• Depreciation holdbacks and the paperwork needed to recover them as repairs are completed.
• Allocation between the master policy and owners’ HO-6 policies, especially for drywall, flooring and cabinets.
• Business-like losses for associations with rental income or amenities, depending on the policy.

If the association disagrees with the insurer

• DFS commercial residential mediation. The Florida Department of Financial Services offers mediation for policies where a condominium, cooperative or homeowners’ association is the policyholder. According to DFS, the dispute must generally be $500 or more after the deductible, and the insurer pays the cost, up to $5,000 (Fla. Stat. § 627.7015).
• Appraisal. Most commercial residential policies include an appraisal clause for disputes about the amount of loss.
• Legal action. Florida requires written pre-suit notice before a property insurance lawsuit (§ 627.70152). The association’s attorney should advise on this.

How a public adjuster works with a board

A licensed public adjuster represents the association, not the insurer. For a master-policy claim, that can include inspecting and documenting the entire property, reviewing the policy, preparing an itemized estimate, coordinating with the manager and engineers, and negotiating with the carrier. The board approves any settlement. A public adjuster can’t give legal advice and, under Florida law, can’t take part in the repairs (Fla. Stat. § 626.8795).

Communicating with owners

Owners will have questions about the claim, assessments and repair timelines. Regular, written updates, at board meetings or by email, help reduce confusion. Keep updates factual: what’s been inspected, what’s been submitted and what’s pending. Avoid predicting outcomes until the carrier has responded.

Frequently asked questions

Talk with us before you sign off on a number

If your board is facing a storm claim, we’d be glad to walk through it with you and your manager. Call 888-888-8591 or visit www.NorthsideAdjusters.com for a free claim review. We work with condo associations across Florida.

Learn more about our condo association and HOA claim services.