Condominium and HOA storm claims in Florida involve a layer of complexity that single-family rental claims don't: two insurance policies with overlapping responsibilities, a set of governing documents that define the coverage boundary, and a state statute that imposes specific obligations on the association — all of which have to work together after a storm to get the damage repaired and the claims paid.
Property managers who work with condominium associations and HOA-governed properties need to understand how the master policy and unit owner policies interact, what happens when the HOA's deductible exceeds available reserves, and how Florida law allocates the insurance burden between the association and individual unit owners.
The Two-Policy Structure: Master Policy and Unit Owner Policy
Florida condominium communities operate under a two-tier insurance structure. The HOA or condominium association maintains a master policy that covers the building and common areas. Individual unit owners carry their own policies (typically HO-6 for condominiums) that cover their personal property and — depending on the master policy's coverage structure — the interior of their units.
The coverage boundary between these two policies is defined by the master policy and by the association's governing documents (the declaration of condominium or CC&Rs). That boundary determines which claim gets filed for which damage after a storm — and which carrier is on the hook for which repair cost.
Bare Walls In vs. All In: The Coverage Structure That Determines Everything
The most important structural distinction in HOA insurance is whether the master policy is written on a "bare walls in" or "all in" basis:
Bare Walls In (also called "studs out")
Under bare walls in coverage, the master policy covers the building structure from the exterior walls through — and including — the drywall. Everything inside the unit is excluded. Flooring, cabinets, countertops, light fixtures, plumbing fixtures, and appliances are all the unit owner's responsibility to insure through their individual HO-6 policy.
In a storm where water intrusion damages both the structure and the interior of units, a bare walls in policy means: the HOA files a claim for the building damage, and each unit owner files separately on their HO-6 for interior damage. If unit owners don't have HO-6 policies, their interior damage is uninsured — which becomes the property manager's problem when tenants can't occupy the unit.
All In (also called "walls in" or "single entity")
Under all in coverage, the master policy covers everything in the unit as originally installed by the developer — including flooring, cabinetry, built-in appliances, and fixtures. This coverage is broader and simplifies post-storm coordination, but it has a critical exclusion: unit owner upgrades above the developer's original specification are generally not covered by the master policy. A unit owner who replaced the builder-grade carpet with hardwood floors installed $15,000 in cabinets not included in the original buildout, and upgraded the bathrooms — that work is excluded from all in coverage and requires the unit owner's HO-6 to cover the difference.
When the HOA Deductible Becomes the Unit Owner's Problem
Florida condominium master policies carry significant deductibles — particularly hurricane deductibles, which are typically 2–5% of the insured building value. On a 40-unit condominium building insured for $8 million, a 3% hurricane deductible is $240,000. That's $240,000 the association must cover before the master policy pays anything.
When the hurricane deductible exceeds the association's available reserves, the association has two options: special assessment (charging unit owners a pro-rata share of the deductible) or borrowing. Florida Statute 718.111 authorizes associations to pass through a portion of the deductible to unit owners when the damage originated within their unit.
Unit owners who receive a special assessment for their share of the HOA's hurricane deductible can be facing $5,000–$15,000 or more in unanticipated costs. Loss assessment coverage on an HO-6 policy is specifically designed to cover the unit owner's share of association special assessments — but it's an optional endorsement and many unit owners don't carry it. Property managers who rent HOA units should confirm tenants understand this exposure, and owner-clients should be advised to review their HO-6 loss assessment limits before storm season.
For property managers overseeing units within HOA communities, the deductible assessment risk is real and often unexpected. When a storm hits and the HOA board calls a special assessment meeting, unit owners who weren't aware of this exposure are genuinely surprised — and sometimes unable to pay, which creates downstream issues for the association's repair funding.
Florida Condominium Act Requirements for Storm Claims
Florida Statute 718.111 imposes specific insurance requirements on Florida condominium associations:
- Full replacement cost coverage: The association must insure condominium property for the full insurable replacement cost value, including wind coverage. Underinsured associations that haven't updated their coverage to reflect current construction costs face shortfalls in a total loss scenario.
- Prompt claims filing: The association is obligated to file claims promptly after a covered loss. Delay in filing can complicate the claim and affect deadlines.
- Unit owner notification: Associations must notify unit owners of claim status and the expected timeline for repairs to common areas and the building exterior.
- Adequate reserves: Post-2022 legislation requires Florida condominiums to maintain adequate reserves for deferred maintenance and capital improvements — a response to the Surfside collapse and the subsequent audit of reserve fund adequacy across the state.
Coordinating Claims Between Master and Unit Policies
Post-storm, property managers often become the de facto coordinators between the HOA's master policy claim and individual unit owners' HO-6 claims — particularly when water intrusion damage crosses the coverage boundary between structure and unit interior.
Document where damage originated
When water intrusion damages both structural elements (covered by master policy) and interior finishes (potentially covered by unit policy), the origin of the water matters. A roof breach that allowed rain to enter the building is a common area/structural failure — the master policy claim covers the roof repair and the structural drying, and the coverage question for interior damage depends on whether the policy is bare walls in or all in. Document the entry point, the path through the structure, and where each type of damage begins and ends.
Get both policies before the adjusters arrive
Obtain the master policy declarations page and the unit owner's HO-6 policy before either adjuster visits. Understanding the coverage boundary in advance — including the bare walls in vs. all in structure, any exclusions, and both deductibles — lets you direct each adjuster's attention appropriately and prevents the situation where each carrier points to the other's policy as the responsible party.
When carriers disagree on the coverage boundary
Coverage boundary disputes between master and unit policies are one of the most common sources of delayed repairs in condominium storm claims. The master policy carrier says the damage is inside the unit — unit owner's problem. The unit owner's HO-6 carrier says the damage originated in the common areas — HOA's problem. The unit sits unrepaired while the dispute plays out.
Property managers who identify this dynamic early should push the HOA board to initiate repairs and seek recovery in the policy dispute rather than waiting for resolution before making the property habitable. Florida law requires habitability — delaying repairs while carriers argue is not a legally defensible position when tenants are displaced.
If you manage units within an HOA or condominium, request the master policy declarations page at the start of each year. Confirm whether coverage is bare walls in or all in, what the hurricane deductible is, and whether the association's coverage limits reflect current replacement costs. This information directly affects what your clients (unit owners) need to carry on their individual policies. Discovering a bare walls in structure after a storm is too late to add coverage.
The Florida Condo Reserve Fund Issue
The 2022 Florida legislation mandating reserve adequacy for condominiums created a new dynamic in post-storm claims: associations with inadequate reserves may be unable to fund the gap between the master policy payout and the actual repair cost — particularly when a high hurricane deductible depletes available funds before insurance coverage begins.
Property managers should understand where any HOA community they work in stands on reserve fund adequacy. An association that deferred structural maintenance, has a large hurricane deductible, and carries reserves below the mandated level is a liability risk after a major storm — repairs may be delayed, special assessments may be extraordinary, and unit habitability may be prolonged.
Track HOA policy details alongside unit-level coverage
LossHQ lets you store master policy terms, deductible exposure, and coverage type for every HOA property you manage — so you know exactly where the coverage boundaries are before a storm creates a dispute over them.
Start Free — No Card Required →The Bottom Line
HOA storm claims are more complex than single-property claims because they involve two overlapping policies, governing documents that define the coverage split, Florida statutory obligations, and a deductible structure that can produce special assessments on individual unit owners. Property managers who understand these mechanics before a storm — who know whether their HOA's master policy is bare walls in or all in, what the hurricane deductible is, and how loss assessment coverage works — are far better positioned to navigate the post-storm claim process without being caught between two carriers arguing over whose policy applies.
The investment is reading the master policy declarations page and the association's governing documents once per year. That hour of reading is worth more than the weeks of delay that come from discovering the coverage structure for the first time while a tenant is displaced and neither carrier has started the repair.