When a hurricane damages a Florida condominium, two insurance policies may be involved: the association's master policy and the unit owner's HO-6 policy. Which one covers what is determined by the declaration of condominium and the specific terms of each policy. Property managers who do not understand this split end up in prolonged coverage disputes that delay repairs and create liability exposure on all sides.
The Master Policy: What the Association Covers
Florida Statute 718.111 requires condo associations to maintain a master policy covering the building structure and common areas at replacement cost value. The master policy covers the building as a whole -- the roof, exterior walls, framing, elevators, common hallways, and common area fixtures. What it does not automatically cover is everything inside each individual unit, and that is where the declaration of condominium becomes critical.
Florida condo associations operate under one of two coverage standards: bare walls in or all in. A bare walls in policy covers only the structure from the unfinished surfaces inward -- the bare drywall, subfloor, and structural components -- but not the flooring, fixtures, cabinetry, appliances, or any improvements inside the unit. An all in policy covers the original standard finishes and fixtures inside each unit as built by the developer. The declaration of condominium specifies which standard applies. This is not something to guess at -- pull the declaration and read the insurance section before advising any unit owner.
The Unit Owner's HO-6: What It Must Cover
Under a bare walls in association, the unit owner's HO-6 policy must cover everything from the unfinished surfaces inward: flooring, cabinetry, countertops, fixtures, appliances, interior walls, and any improvements the owner made above the original standard. Under an all in association, the HO-6 must cover personal property and improvements above the developer standard.
Either way, the HO-6 covers personal property, additional living expenses when the unit is uninhabitable, personal liability, and -- critically -- loss assessment coverage when the association levies a special assessment against unit owners after a storm.
The Loss Assessment Issue
This is the coverage gap that catches most Florida condo unit owners off guard. When a hurricane causes damage that exceeds the association's master policy limit, or when the hurricane deductible itself is substantial, the association levies a special assessment against each unit owner. A building with a $10 million insured value carrying a 5 percent hurricane deductible has a $500,000 deductible -- split among 50 units, each owner may owe $10,000 or more before any uninsured repair costs are considered.
The loss assessment endorsement on an HO-6 policy pays this assessment, up to the endorsement limit. The problem is that the default limit on most HO-6 policies is $1,000 -- wholly inadequate for Florida. Property managers who advise unit owners on insurance should specifically recommend loss assessment coverage of at least $25,000 and document that recommendation in writing.
What to Do When a Condo Unit Sustains Damage
When storm damage hits a condo unit you are managing, the sequence is: document everything first (photographs and video of all visible damage), then notify both the association and the unit owner's HO-6 carrier in writing. Do not wait to determine which policy applies before notifying both -- insurers have strict notice requirements and delay can create coverage issues.
Review the declaration of condominium to categorize the damage: structural and exterior damage goes to the association's master policy; interior finishes, fixtures, and personal property go to the HO-6. If there is any ambiguity about which category applies to a specific damaged element, note it in your notification to both carriers and let them coordinate. The responsibility for resolving the coverage split is theirs, not yours -- your job is to notify promptly and document thoroughly.
The association's property manager is responsible for filing the master policy claim for common areas and structural damage. They are not responsible for filing the unit owner's HO-6 claim for interior damage. If you are managing a unit and you wait for the association to handle everything, you may miss your own HO-6 filing deadline. File independently with the unit owner's carrier for all HO-6 covered damage, regardless of what the association is doing with the master policy claim.
When the Association and Unit Owner Dispute Coverage Responsibility
Coverage disputes between associations and unit owners arise most often when the declaration is ambiguous, when damage crosses the structural-interior boundary (water that entered through the roof and damaged interior finishes), or when improvements made by the unit owner complicate the original build standard.
The starting point for resolving any dispute is the declaration of condominium, interpreted in light of Florida Statute 718.111. If the declaration does not clearly allocate responsibility for the damaged element, the statute provides default rules that generally place structural responsibility on the association. Engage the association's attorney for a written interpretation. Meanwhile, pursue both carriers simultaneously -- the repair timeline does not pause for coverage arguments.
Every property manager taking on a condo unit should read the insurance section of the declaration of condominium during onboarding. Confirm whether the association uses a bare walls in or all in standard, identify the deductible amounts on the master policy, and verify that the unit owner's HO-6 covers the gap. Document your findings and provide written recommendations to the unit owner. This is the kind of professional diligence that prevents both coverage gaps and E&O claims.
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Condo storm claims require managing two policies at once against a framework defined by the declaration of condominium. Know the coverage standard before the storm, notify both carriers immediately after, and document the split between association and unit owner damage with care. For related guidance, see Florida flood insurance vs. hurricane insurance, how to document hurricane damage for insurance claims in Florida, and Florida property manager legal responsibilities after a hurricane.