Florida Condo & HOA Master-Policy Insurance Claims

Condo and HOA claims in Florida are not single-family claims with more units. They are structurally different: a master policy covers the building per the declaration, individual unit owners carry HO-6 policies for everything else, and the line between the two is set by Florida Statute Chapter 718 and the association's governing documents. When a hurricane, fire, or pipe burst hits, the association board, the unit owners, the master-policy carrier, and the HO-6 carriers each have separate exposure — and they routinely fight over the allocation.

What we handle

Multi-family residential condominium master-policy claims
HOA master-policy claims (when the HOA carries property coverage)
Mixed-use condominium master-policy claims
Townhome / villa / cluster-condo master-policy claims
Unit-owner HO-6 claims that interact with a master claim
Special assessment recovery via loss-assessment coverage
Board fiduciary obligations and pre-litigation positioning

The master-policy / HO-6 split

Under Fla. Stat. 718.111(11), a Florida condominium association's master policy must cover the building as originally constructed — and as later improved by the developer or association — including everything within "the unboundaries of each unit as originally installed." The unit owner's HO-6 covers everything else: betterments and improvements, contents, loss of use, and liability.

In practice, the master policy typically covers:

Structural elements (walls, floors, roof, foundation)
Building systems (common-area plumbing, electrical, HVAC up to the unit)
Drywall, subfloor, basic flooring as originally installed
Common areas (lobbies, hallways, amenities)

The HO-6 typically covers:

Cabinetry, countertops, upgraded flooring beyond original spec
All contents, furnishings, electronics
Loss of use / ALE while the unit is uninhabitable
Unit-owner liability
Loss assessment — coverage for special assessments levied by the association for an uncovered or under-covered loss

The boundaries vary by association declaration. Read it.

Why condo claims are commonly disputed

Allocation disputes between master and HO-6 carriers. Each tries to assign the damage to the other.
Coverage-type disputes within the master. Was that water damage a covered cause (covered) or a maintenance issue (excluded)? The master policy's named-perils vs all-risk form matters enormously.
Statute-imposed minimums. Fla. Stat. 718.111(11)(f) requires the master to cover building elements regardless of the master carrier's preferred construction.
Reserve and assessment pressure. Boards face fiduciary pressure to limit assessments — and may be tempted to under-claim or settle short to avoid a big special assessment.
Documentation complexity. Multi-unit losses require coordinated documentation across owners, the manager, and contractors.

Coverage parts in a typical Florida condo master policy

Building coverage — the structure per the declaration
Business interruption / loss of rents — for assessable income
Ordinance or law — code upgrades during repair
Equipment breakdown — covered separately or as endorsement
Wind / named-storm — often a separate deductible, frequently a percentage deductible
Flood — almost always separate (NFIP or RCBAP for condos)

Florida statutory context

Fla. Stat. 718.111(11) — master-policy requirements
Fla. Stat. 718.112 — board fiduciary duties
Fla. Stat. 718.115 — common expenses and assessments
Fla. Stat. 627.70131 / 627.70132 — carrier response deadlines and supplemental-claim windows
Fla. Stat. 624.155 — bad faith and CRN

How Ocean Point handles condo/HOA claims

Declaration review. Every claim starts with a deep read of the declaration of condominium and the master policy — without this, allocation is guesswork.
Master-and-HO-6 parallel intake. Unit owners with damage are coordinated with the association claim so HO-6 carriers and the master carrier can be put on coherent notice simultaneously.
Multi-unit damage mapping. We document unit-by-unit, common area-by-common area, with floor plans, photographs, and Xactimate measurement.
Board interface. We work with the board, the property manager, and (when needed) the association's general counsel — not around them. Fiduciary documentation is preserved for the file.
Loss-assessment positioning. When a special assessment looks likely, we structure the claim and supporting documentation so unit-owner loss-assessment coverage can be properly invoked.
Escalation. Appraisal, mediation, CRN, and coordination with counsel when needed.

Frequently asked questions

Who files the claim — the unit owner, the association, or both?

Both, typically. The association files the master-policy claim for building elements; each affected unit owner files an HO-6 claim for their interior betterments, contents, ALE, and any loss-assessment exposure. The two claims should be coordinated so the master and HO-6 carriers can't ping-pong the allocation.

What is loss-assessment coverage and why does it matter?

Loss assessment is an HO-6 coverage that pays when the association levies a special assessment because the master policy didn't cover or fully cover a loss. Typical sub-limits are $1,000-$50,000+; many unit owners are underinsured for this exposure. After a major loss, loss-assessment claims often become the largest individual-owner recovery.

Can the board be sued for handling a property claim badly?

Board members owe a fiduciary duty under Fla. Stat. 718.111. Mishandled claims — failure to claim covered damage, accepting clearly inadequate settlements, missing statutory deadlines — can expose individual board members and the association. Documentation that the board exercised reasonable judgment is the standard defense; proper claim handling supports that record.

What is RCBAP and how is it different from a regular master policy?

RCBAP (Residential Condominium Building Association Policy) is the NFIP product designed for condo associations. It covers flood damage to the building on a master basis. A standard master policy almost always excludes flood, so flood exposure is typically covered (if at all) by an RCBAP carried by the association.

Our master policy has a 5% named-storm deductible — what does that mean for a $10M building?

It means $500,000 of damage is yours (the association's) before the carrier pays anything on a named-storm loss. That deductible is typically funded through reserves or a special assessment — which is where loss-assessment coverage on unit-owner HO-6 policies becomes critical to individual owners.