Insurance responsibility in a condominium depends on the association’s governing documents, Florida law, and the specific policy language in place. In many condo communities, the association’s master policy covers shared structures and common areas, while the unit owner’s HO-6 policy helps cover interior items, personal property, and certain owner-specific risks.
Key Takeaways:
- It ultimately comes down to your association’s governing documents and FL Statute 718; however, the typical structure for a condo insurance policy is that the association covers drywall-out and a unit-owner’s HO6 would cover paint-in.
- The association may carry flood coverage to protect the structure, but a resident should consider flood coverage to protect their own contents and interior portion of their unit.
- Loss assessment coverage can be added to a personal HO6 policy to protect residents from unexpected costs incurred from special assessments.
What type of insurance policy do I need as a condominium unit owner?
An HO-6 insurance policy is a type of homeowners insurance that is specifically designed for condominium and co-op unit owners.
What am I responsible for covering as a unit owner vs. what my association’s policy covers?
Put simply, condo insurance responsibility is largely determined by your community’s governing documents and FL Statute 718. However, condo property insurance policies are typically structured so that the association’s policy covers drywall-out, and an HO-6 policy would cover paint-in.
Refer to the table below with various coverage areas and the typical responsible party for association and unit owner insurance coverage.
Association (Master Policy) vs. Unit Owner (HO-6) Coverage
|
Coverage Area |
Association (Master Policy) |
Unit Owner (HO-6) |
|
Building exterior |
Responsible - roof, walls, windows, balconies, and shared structure |
Not responsible |
|
Common areas |
Responsible - property in lobbies, hallways, pools, gym, and shared amenities |
Not responsible |
|
Interior unit fixtures |
Not responsible (drywall-out only) |
Responsible - paint, flooring, cabinetry, built-in appliances, fixtures |
|
Unit owner personal property |
Not responsible |
Responsible - furniture, electronics, clothing, valuables |
|
Wind / hurricane damage |
Typically included in master policy to cover exterior portions of building mentioned above |
Typically included in HO-6 policy to cover interior of unit and contents (verify) |
|
Flood insurance |
Recommended and lending requirements may apply for unit owners of buildings in high-risk flood zones |
Recommended to carry separate flood policy covering interior and contents |
Please Note: Coverage details vary by specific policy and governing documents. The above is an example to illustrate a common way that some policies are structured. Consult a licensed Florida insurance professional for guidance specific to your community as it may be different than what is stated above.
Is flood coverage included in an HO-6 policy?
No, condo flood insurance is typically not included in a standard HO-6 policy. Your association may have a master flood insurance policy to protect the building’s exterior and structural components; however, in most cases you’ll need to purchase separate flood coverage to protect the contents and interior portions of your unit.
What is loss assessment coverage?
Loss assessment coverage is designed to protect you from unexpected costs incurred by special assessments when the association has out-of-pocket costs to cover due to a loss.
Loss assessment coverage can typically be added to your HO-6 policy and can be great additional coverage to consider.
Learn more about Florida Community Insurance
Associations that want a broader overview of insurance coverage, renewals, and risk management can also review Campbell’s community insurance CEU course recap.
Your local Community Insurance Experts are here to help!
The team at Community Insurance Experts specializes in working with Florida community associations on their insurance, and they are happy to help provide advice and guidance on these items or any others your association may be facing.
Community Insurance Experts is a Florida commercial insurance agency dedicated to serving community associations across the state. They provide a comprehensive range of coverage options tailored to meet your community's needs, including property, general liability, directors and officers, crime, umbrella, workers compensation, and more.