AnswerA South Florida condo owner usually faces two separate hurricane deductibles: the condominium association's deductible on the master building policy, and the deductible on the owner's own HO-6 unit policy. Under Florida law, the association's property-insurance deductibles are a common expense (§718.111(11)(j), Fla. Stat.), so a large building-wide hurricane deductible can come back to owners as an assessment. Your HO-6 must include only $2,000 of loss-assessment coverage by statute (§627.714). If you don't raise it, the gap between those numbers is yours. Your own HO-6 hurricane deductible is a percentage of your dwelling limit that you elect from the insurer's offer (§627.701). This Haute Real Estate Network Insights piece explains how the pieces fit, using the current Florida Statutes. It is not insurance, legal, or tax advice.

At a glance

Rule (2026 Florida Statutes, fetched 2026-10-16) What it means for a luxury condo owner
Board sets the master-policy deductibles — §718.111(11)(c) Deductibles must match industry standards for similar buildings and may be based on reserves or "predetermined assessment authority," set at a board meeting
Deductibles are a common expense — §718.111(11)(j) A hurricane deductible on the building policy is shared by owners, often through the budget, reserves, or a special assessment
Master policy excludes unit interiors — §718.111(11)(f)3. Floor, wall and ceiling coverings, fixtures, appliances, built-in cabinets, countertops, window treatments, and personal property inside the unit are the owner's to insure
HO-6 loss assessment: at least $2,000 — §627.714(1) The statutory minimum, with a deductible of no more than $250. Ask what higher limits your insurer offers
HO-6 hurricane deductible offers — §627.701(3) Insurers must offer $500, 2%, 5%, and 10% of dwelling limits, with exceptions for higher-value policies (below)
Calendar-year rule (personal lines) — §627.701(5)(a) One HO-6 hurricane deductible per calendar year with the same insurer or insurer group
Association policy: annual or per-storm — §627.701(5)(b) For commercial residential policies, insurers must offer both an annual hurricane deductible and a per-hurricane deductible
When "hurricane" applies — §627.4025(2)(c) From when an NHC hurricane warning is issued for any part of Florida until 72 hours after the last hurricane watch or warning for Florida ends
Claim deadlines — §627.70132 Claims within 1 year of the date of loss (supplemental claims 18 months). Loss-assessment claims by the later of 1 year after the loss or 90 days after the board votes the assessment, and never more than 3 years after the loss

Deductible 1: the association's master policy

Florida requires every residential condominium association to carry "adequate property insurance," based on replacement cost determined by an independent insurance appraisal (or an update) at least once every 3 years (§718.111(11)(a)). The statute then lets the board set the deductibles (§718.111(11)(c)):

  1. They must be "consistent with industry standards and prevailing practice" for similar communities in the area.
  2. They "may be based upon available funds, including reserve accounts, or predetermined assessment authority."
  3. The board sets them at a board meeting held under the budget-meeting procedures of §718.112(2)(e).

Condominium association coverage is commercial lines residential coverage under §627.4025(1). For commercial residential policies, §627.701(5)(b) requires insurers to offer a hurricane deductible that applies on an annual basis and one that applies to each hurricane. Ask which one your building chose. In a two-storm season, that choice changes how much the association (and so the owners) absorbs.

Who pays the association's deductible? §718.111(11)(j) says all property-insurance deductibles, and damages beyond the association's coverage, are a common expense. The exceptions are damage caused by an owner's (or occupant's) intentional conduct, negligence, or rule violations, plus limited carve-outs for owner-installed improvements (§718.111(11)(n)). An association can opt out of this allocation by majority vote of the total voting interests and allocate costs as the declaration provides; the opt-out must be recorded (§718.111(11)(k), (m)). Check whether your building has opted out.

Deductible 2: your HO-6 unit-owner policy

Condo unit-owner policies are personal lines residential coverage (§627.4025(1)). Before issuing one, an insurer must offer hurricane deductibles of $500, 2%, 5%, and 10% of the policy dwelling limits (§627.701(3)(a)). The statute adjusts the menu for higher-value policies, which matters in luxury buildings:

  • Dwelling limits of $250,000 or more: the insurer need not offer the $500 option (§627.701(3)(d)1.).
  • $1 million to under $3 million: the insurer may offer a 3% hurricane deductible in place of 2% (§627.701(3)(d)2.).
  • $3 million or more: the insurer need not offer the 2% option (§627.701(3)(d)3.).

Disclosure you should see: a policy with a separate hurricane deductible must carry, in 18-point bold type, "THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES, WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU." Personal-lines insurers must also show the dollar value of the hurricane deductible on the declarations page (§627.701(4)(a)–(b)).

How the math works: a percentage deductible is calculated on the dwelling limit (Coverage A). Citizens Property Insurance gives this example in its June 4, 2026 policyholder newsletter: a 2% deductible on a home insured for $300,000 means $6,000 of covered damage the policyholder pays before Citizens pays. In a condo, Coverage A on an HO-6 usually covers the unit-owner items the master policy excludes. Confirm what your declarations page lists.

Calendar-year rule: for personal-lines policies, the hurricane deductible applies once per calendar year to all covered hurricane losses under policies from the same insurer or insurer group. For a second storm, the insurer may apply the greater of the remaining hurricane deductible or the all-other-perils deductible (§627.701(5)(a)). The DFS consumer guide adds that switching to an insurer outside the same group mid-year can mean a new deductible.

The gaps luxury owners miss

  1. The loss-assessment gap. The statute requires only $2,000 of HO-6 loss-assessment coverage per direct loss, regardless of how many assessments follow (§627.714(1)). If the association's hurricane deductible is passed to owners, your share may be far larger. Coverage is capped at the limit in effect one day before the storm (§627.714(2)), so raising it after a hurricane is named doesn't help for that storm.
  2. The interior gap. The master policy must exclude unit finishes, fixtures, appliances, cabinetry, countertops, window treatments, and personal property (§718.111(11)(f)3.). High-end build-outs live on your HO-6.
  3. The improvement gap. The association isn't obligated to pay to repair improvements that benefit only your unit and weren't part of the developer's standard build (§718.111(11)(n)).
  4. The flood gap. Florida DFS's hurricane-deductible guide notes that hurricane coverage "does not include coverage for flooding." Florida OIR says flood damage is not typically covered by a homeowners policy and must be bought separately. Associations may carry flood insurance for common elements, association property, and units (§718.111(11)(e)). Ask whether yours does.
  5. The reporting gap. Late reporting can shift costs to you. The association isn't required to pay as a common expense for losses a unit owner knew or should have known about but didn't report until after the association's claim was resolved (§718.111(11)(j)4.). Your own claim must be noticed within 1 year of the date of loss, and for hurricanes the date of loss is the landfall date (§627.70132(2)–(3)).

Questions to ask before you buy (or renew)

  1. Master policy: What is the hurricane deductible, and is it annual or per hurricane? Ask for the declarations page and the board minutes that set it.
  2. Funding: Is the deductible budgeted in reserves, or would the board rely on a special assessment? (See Florida Condo Special Assessments.)
  3. Opt-out: Has the association recorded an opt-out of the §718.111(11)(j) cost allocation?
  4. Your HO-6: Which hurricane-deductible percentage did you elect, and what is its dollar value on the declarations page?
  5. Loss assessment: Is your limit only the $2,000 statutory minimum? What higher limits does your carrier offer, and does the hurricane deductible apply to them?
  6. Flood: Does the association carry flood coverage, and do you need your own?
  7. Same insurer group: If you switch carriers mid-season, how is the calendar-year hurricane deductible handled?

Talk to a South Florida luxury condo specialist

  • Find a Realtor
  • Wesley Ulloa & Bianca Guevara — LUXE Properties, Coral Gables. Ulloa is Founder, CEO and Broker, per their profile, which lists South Florida luxury markets including Pinecrest and Old Cutler Estates.
  • Maria Kuzina — Broker/Owner of Miami Luxury Real Estate LLC, a Miami Beach brokerage that her profile describes as specializing in luxury condos and waterfront estates, with a focus on new developments in the Miami area.

Neither listing is a ranking or a claim about insurance outcomes. Agents don't replace a licensed insurance agent or attorney. Ask your agent to request the association's insurance documents early in the contract period.

Related Haute Real Estate Network pages

Sources

Statutes and agency pages checked on October 16, 2026.

General information for South Florida condo buyers and owners. Not insurance, legal, or tax advice. Policy terms control; confirm deductibles and coverage with a licensed insurance agent and your association's documents.