Condo Master Policy Deductible Calculator

A percentage deductible on a condo master policy is calculated as a percentage of the insured value stated in the policy, not of the damage amount. A 5% deductible on a $30 million building is $1.5 million, whether the damage is $2 million or $20 million. For hurricane deductibles on condo association policies, Florida lets insurers offer up to 10% of insured value if they also offer 3% (Fla. Stat. § 627.701(8)). The deductible is a common expense (§ 718.111(11)(j)), so any part the association does not cover from available funds is divided among unit owners in the shares the declaration of condominium sets.

Florida law requires common expenses to be assessed against the units in the proportions or percentages the declaration of condominium provides (Fla. Stat. § 718.115(2)), and in a residential condominium each unit's share must equal its share of the common elements. For residential condominiums created after April 1, 1992, that share must be based either on each unit's square footage or on equal shares (§ 718.104(4)(f)). Check your declaration's schedule of shares before relying on any assumption. HOAs operate under Chapter 720, which, for communities created after October 1, 1995, also ties assessments to each member's proportional share as the governing documents describe it (§ 720.308(1)).

Loss assessment coverage is part of your individual HO-6 (condo unit owner) policy. It pays toward an association assessment that follows a direct property loss of a type your own policy covers. Florida requires at least $2,000 of it on unit owner policies issued or renewed since July 1, 2010, with a deductible of no more than $250 (Fla. Stat. § 627.714(1)), and the limit that applies is the one in effect one day before the loss (§ 627.714(2)). Compare your limit with your share from the calculator above; beyond the Florida minimum, what the coverage pays depends on your policy form.

The board sets the deductible based on available funds, including reserve accounts, or predetermined assessment authority (Fla. Stat. § 718.111(11)(c)). Using reserve funds for something other than their reserve items takes advance approval by a majority of the association's total voting interests (§ 718.112(2)(f)3.). For an association that must have a structural integrity reserve study (buildings three habitable stories or higher), budgets adopted on or after December 31, 2024 do not allow a vote to use reserve funds for anything other than the study's items. One exception: if the local building official finds the entire building uninhabitable after a natural emergency, the board may spend reserve funds to make it habitable (§ 718.112(2)(f)2.d.). If the board is considering reserves to soften a special assessment, consult a community association attorney before the vote.

Unit owners can question a special assessment on several grounds: the board did not give the required notice (a board meeting to consider a nonemergency special assessment needs written notice at least 14 days ahead, stating the estimated cost and purposes, under Fla. Stat. § 718.112(2)(c)), the allocation does not match the declaration, or the deductible was miscalculated. If the assessment also covers repair costs the carrier did not pay, a dispute over an underpaid master policy claim can reduce that part of the assessment; it does not change the deductible itself. A licensed public adjuster can review the master policy claim for this purpose.

Yes, with one difference. Florida requires every residential condominium association to carry adequate property insurance on the condominium property (Fla. Stat. § 718.111(11)). In an HOA where each owner insures their own house, the association's policy covers common areas such as a clubhouse or pool. The allocation math in this tool works for both, and the per-home share is smaller when the insured value covers only common areas.

At renewal, the board can ask for a lower hurricane deductible, which can raise the premium. For condo association policies, Florida lets an insurer offer a hurricane deductible of up to 10% of insured value if it also offers 3% at the time of the offer and at each renewal (Fla. Stat. § 627.701(8)), and the insurer must offer a choice between a hurricane deductible that applies once per calendar year and one that applies to each hurricane (§ 627.701(5)(b)). Florida also requires residential property insurers' rate filings to include discounts, credits, or deductible reductions for wind mitigation features such as roof strength, roof-to-wall connections, and opening protection (§ 627.0629(1)).