Short answer: According to Fla. Stat. 627.714, a Florida residential condominium unit-owner (HO-6) policy must include at least $2,000 of loss assessment coverage for all assessments arising from the same direct loss, with the deductible for that coverage capped at $250. The unit-owner policy is excess over other applicable coverage, and the payout is capped at the loss assessment limit in effect the day before the loss.
What does Florida Statute 627.714 do?
Fla. Stat. 627.714, "Residential condominium unit owner coverage; loss assessment coverage required," sets a floor of protection for condo unit owners when the association levies a special assessment after a shared loss. It decides how much loss assessment coverage a unit-owner policy must carry and how that coverage interacts with the association's policy.
The required loss assessment coverage
| Requirement | What the statute sets |
|---|---|
| Minimum loss assessment coverage | At least $2,000 for all assessments made as a result of the same direct loss |
| Maximum deductible on that coverage | $250 |
| Payout cap | Cannot exceed the unit owner's loss assessment limit in effect on the day before the date of loss |
| Deductible waiver | No deductible applies to the loss assessment coverage if a deductible was already applied to other property damage from the same direct loss |
Key takeaway: even a bare HO-6 policy must give you at least $2,000 toward a post-loss special assessment, and the timing rule means the association's later assessment is measured against the coverage you had at the time of the loss, not when the bill finally arrives.
Excess over other coverage
A unit-owner policy must state that it provides coverage excess over any other policy covering the same property. And where the association's policy has no right of subrogation against unit owners, the unit-owner policies cannot have subrogation rights against the association, which prevents insurers from circling recovery back onto individual owners.
Why this matters
After a hurricane or major building loss, condo associations frequently pass large special assessments to unit owners to cover the association's deductible and uncovered scope. Owners are often surprised that their HO-6 policy responds at all. Section 627.714 guarantees a baseline, and the "limit in effect one day before the loss" rule is a common point of dispute a carrier can get wrong.
How does Ocean Point apply this statute?
For a unit owner facing a special assessment, we confirm the loss assessment limit that was in force the day before the loss, apply the $250 deductible cap (or the waiver where another deductible already applied), and coordinate the unit-owner claim with the association's condo/HOA claim so the two policies are worked in the right order rather than against each other.