Florida Association Insurance 101

One of the costliest budget items for associations, and one of the fastest-changing markets in Florida, is insurance. Associations and boards often struggle with insurance requirements, particularly because the laws and market rates evolve rapidly. In this article, we review the primary insurance policies mandated by Florida law and discuss practical strategies for evaluating carriers to ensure your association secures competitive and compliant coverage.

Condo association insurance types

Under Florida Statute 718, the Condominium Act, condominium associations are required to carry several insurance policies to help ensure that day-to-day operations and the well-being of residents are protected. These include:

Property insurance (casualty insurance)
General liability insurance
Fidelity bond and employee dishonesty insurance

These policies provide a baseline of coverage, shielding associations from significant financial or legal repercussions that could have been prevented or mitigated under state law. In addition, other policies are required under certain circumstances or recommended as good practice:

Directors and officers (D&O) insurance
Workers' compensation (required with four or more employees)
Flood insurance (required if the condominium is in a FEMA-designated Special Flood Hazard Area and has a federally backed mortgage)
Umbrella or excess liability insurance
Cyber liability insurance

Summary of insurance policies

Type	Required by Florida law?	Statute reference
Property insurance	Yes	718.111(11)(a)
General liability	Yes	718.111(11)(a)
Directors & officers (D&O)	No	N/A
Fidelity bond (employee dishonesty)	Yes, if revenues exceed $500,000	718.111(11)(h)
Workers' compensation	Yes, if 4+ employees	440.055
Flood insurance	Yes, if in a FEMA flood zone and mortgage-backed	NFIP and 42 U.S.C. 4012a
Umbrella / excess liability	No	N/A
Cyber liability	No	N/A

Carrying these supplemental policies may be legally required in some cases and wise in others for associations looking to minimize risk. Failure to maintain adequate coverage can lead to serious legal and financial consequences if a court finds that negligence contributed to a loss or dispute. Please seek legal counsel for exactly what is and is not required for your association.

Emerging regulatory and market dynamics

Florida's insurance market has changed in recent years, with carriers leaving the state or tightening underwriting standards. Milestone inspections and Structural Integrity Reserve Studies are increasingly required for certain buildings, particularly those over three stories, and these reports can significantly affect underwriting decisions and premiums:

Milestone inspections identify structural deficiencies and safety concerns, which underwriters often review when quoting or renewing coverage.
Structural Integrity Reserve Studies evaluate the long-term repair costs for critical building components. Up-to-date reports can help secure more favorable rates by demonstrating proactive maintenance and risk reduction.

Monitoring legislation and rule changes from the Florida Office of Insurance Regulation helps associations maintain compliance and avoid unexpected premium hikes.

The dos of insurance policy renewal

Start the renewal process early, at least six months out. Schedule multiple insurance agents to present at board meetings so you can compare and select the best match for your association's needs.
Vote on the agent of record. Once you identify a preferred agency, hold a legal board meeting to vote on and document the choice. Signing an agent of record letter empowers the chosen agent to market your coverage to carriers on your behalf.
Follow up 90 to 120 days before renewal. Confirm with your agent of record that they have started securing bids, giving you time to compare offers and negotiate effectively.
Organize key documentation. Keep past claims, wind mitigation reports, milestone and SIRS reports, the mandatory three-year insurance evaluation, current budgets, and copies of existing policies ready. Carriers may request up to five years of documentation.

The don'ts of insurance policy renewal

Don't wait until the last minute. Beginning your search under 90 days before renewal often yields fewer options and too little time to vet carriers properly.
Don't sign an agent of record immediately. Require prospective agencies to demonstrate their value through presentations and data before granting exclusivity.
Don't involve multiple agents for the same policies. Carriers provide a quote only to the first agent who requests it, effectively blocking subsequent agents.

Insurance renewal for Florida condominium associations can be stressful, especially if left until the eleventh hour. Proper planning keeps associations compliant and avoids the pitfalls of insufficient coverage or excessive premiums. If your association needs guidance on renewing policies or navigating Florida's changing insurance landscape, reach out to us at info@managewithaurora.com.

Not sure your association’s coverage matches its real risks? We’ll help you frame the right questions for your agent.

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This article is general information for Florida community associations. It is not insurance or legal advice and is not a substitute for guidance from a licensed insurance professional and your association’s Florida attorney. Policy forms, markets, and statutory requirements change. Confirm coverage specifics with your agent before acting.