Wind and Flood Insurance In FL

7 Replies

We are in the process of purchasing a condo in Florida and have been obtaining quotes from many insurance companies, getting different/ mixed messages and was hoping to clear things up.

The condo HOA has insurance that covers the exterior, so we just need to cover for the studs-in and contents. Some of the vendors are specifying that we need wind and Flood insurance. We aren't looking to pay for insurance if already covered.

Other Info:

The condo complex is raised (Stilted)

We have requested info from the HOA to see whats covered in the Master policy.


If we don't take this coverage (as its the master policy has wind and flood) and opt for the studs-in and contents only, would we be covered if say in a hurricane the slider glass got damaged by debris and the interior suffered damage, or if a flood affected our second floor unit, maybe even a wave?" 

If wind or flood damages the interior of your unit, you would have to have those particular coverages to be covered.

Florida and coastal states are a different animal when it comes to hurricane and flood insurance. I'm an Ohio agent but my parents live on the coast down there and I've reviewed their coverage a few times. First off - it's corny but true...Only an official "flood policy" covers flood damage. If a high water situation floods your unit only a flood policy will pay for those damages.

For named storms aka hurricanes you should expect a high deductible set as a % of the dwelling or unit coverage amount. Example - If the Unit is covered for $200,000 and you have a 20% hurricane deductible you would pay the first $40,000 to put your unit back together. Without the proper coverage you could be paying all the cost to rebuild the inside of your unit out of pocket. This is why the HOA has an interest in your insurance coverage.

The HOA is covering the outside of the units BUT - if you are unable to rebuild the inside of the unit because you don't have the proper insurance that is bad for all the owners in the association so that's why you are getting heat about having the correct coverage.



I strongly suggest you review the By-Laws of the Association to determine what parts of the Building you will own.  Usually, there is a description of the Unit that outlines where the Associations ownership ends and yours begins.  Things like the Sheetrocking, paint, floor coverings, Bathroom fixures, Kitchen cabinets, plumbing & heating within the unit, etc.... could be included in your unit meaning you need to insure them. 

The Associations policy with only pay to bring the unit back to the extent that is required regardless of what caused the damage.  So in the case of Wind, Water, Fire, etc., if it is part of your unit as defined in the bylaws, you will need to insure it or pay out of pocket.  In most cased, the Condo Associations policy will not cover any of your contents in the unit regardless of what caused the loss.

@Chad R. Most Master policies are going to cover Hurricane and Wind but you need to look at the policy to make sure.  I would think you would just need walls in but you need to see what is covered under the Master

Originally posted by @Melvin List :

@Chad R Holland Most Master policies are going to cover Hurricane and Wind but you need to look at the policy to make sure.  I would think you would just need walls in but you need to see what is covered under the Master

Thanks Melvin, That's what we are waiting to establish from the HOA, Fingers crossed...

@ Chad, congratulation on your new purchase. Most condo communities have a master policy (hazard and flood), however, if the property isn't insured fully or the Deductible is really high or God forbid the association in Florida decided to forgo flood coverage due to a LOMA (being mapped out of the high-risk flood zone). Then when there were a significant loss and the association didn't have enough reserve fund(s) to cover the loss (or deductible) they would be forced to implement an assessment meaning that every unit owner would be assessed whatever their % of the deficit. Unfortunately, this happens more often then I care to see. I am sure you understand this but it is worth saying that when you buy into a shared community you really own a % of the full building and any community building too. So if you decide to get flood insurance but your neighbor doesn't then you might be assessed for the loss that he couldn't cover. Imagine what this can do to your property value let alone your community. There is a Florida Statute 627.714 that basically requires anyone who is in a condo association that their personal insurance have special assessment coverage, so what that means is let's say the community had a loss the was $100,000 dollars below the deductible and you have 50 different unit owners the HOA. The HOA can send the unit owners an actual assessment for the damage then the unit owners turn it into their personal insurance carrier and instead of unit owners paying the $2000 out of pocket their personal insurance company will reimburse the association for the deductible. Something very similar can and does happen when there is flood damage and the association doesn't have the accurate coverage, the flood policy you have will cover any assessment that comes your way due to the loss. Hope I didn't get too nerdy on you.

@Chad R.

Hey Chad, P&C agent here primarily doing work in Miami (everyone has wind and flood insurance.) To answer your scenario the master coverage for the building covers the building itself and common areas SLIDING GLASS DOORS ARE a part of the building. The policy that you're looking for is an HO4 which covers contents, and that HO4 policy NEEDS to have wind coverage to be covered if something happens as a result of a named storm. The master policy will not cover anything you own. Hope this helps!

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