HO-6 Insurance and Special Assessments in Florida
Jesse McGreevy November 4, 2026
Jesse McGreevy November 4, 2026
The Lee County condo and townhouse median reached $255,000 in September 2026, with 3,005 active listings, 6.6 months of supply and a median 86 days to contract (Florida Realtors, September 2026, released October 2026). Collier County condos outside Marco Island carried a $400,000 median with 2,168 for sale, according to NABOR's report of October 23, 2026. An HO-6 policy insures a condo owner's unit interior, belongings and liability, while a special assessment is a charge the association levies beyond the annual budget.
The full buying process lives in our guide to buying a condo in Florida. Here we go deeper on where the two meet: what the unit policy must pay, where flood fits, how assessments are voted and split at closing, and what HO-6 costs locally.
A Florida HO-6 policy covers a condo special assessment only when the assessment results from a direct loss of a type the unit policy insures, such as windstorm damage to common property. Loss assessment coverage does not pay for SIRS reserve funding, deferred maintenance, milestone repairs or a roof that has simply worn out.
Data updated: November 2026 (sources named, retrieved 4 November 2026).
The usual covered case is your share of the master-policy deductible, or of damage above its limits, after an insured storm; s. 718.111(11)(j), F.S., makes both a common expense. Illustrative: a hurricane leaves each unit owing $6,000 toward the deductible. A $2,000 minimum policy pays at most $2,000, leaving you $4,000.
Policy wording decides the rest. In Grife v. Allstate Floridian Insurance Co. (11th Cir. 2008), an owner lost a Hurricane Wilma deductible assessment claim because his policy's "Master Deductible" clause excluded it. The case predates the 2010 statute, but ask your insurance agent in writing what your policy pays toward a master deductible.
An assessment for SIRS reserves or milestone repairs has no covered loss behind it, so loss assessment coverage pays nothing. Our post on milestone inspections and SIRS shows how to estimate that exposure from the reserve study before you buy.
Every Florida HO-6 policy issued or renewed since July 1, 2010 must include at least $2,000 of loss assessment coverage for all assessments from the same direct loss under s. 627.714, F.S., with a deductible of no more than $250, or none if another deductible applies to that loss. That is a floor, not a recommendation.
Data updated: November 2026 (sources named, retrieved 4 November 2026).
Two more rules in s. 627.714 shape a claim. The limit that counts is the one in effect 1 day before the storm or fire, whenever the board votes. The unit policy is also excess over any other policy covering the same property.
The floor has not moved since 2010. HB 625 (2024) would have raised it to $5,000 and died in committee on March 8, 2024; the statute shows no change since. Citizens' current HO-6 coverage worksheet, edition 08/26, lists loss assessment at $2,000 with no option to increase it.
Worksheets from late 2023 to January 2024 offered $3,000, so older summaries are stale. Timing matters too: under s. 627.70132(4), a loss assessment claim must be noticed 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.
A Florida condo master policy under s. 718.111(11), F.S., covers the building as originally installed, including structure, roof and original components. It must exclude, within the unit, personal property, floor, wall and ceiling coverings, electrical fixtures, appliances, water heaters and filters, built-in cabinets and countertops, and window treatments. Those items are the owner's to insure.
Data updated: November 2026 (sources named, retrieved 4 November 2026).
The association also need not repair an owner's upgrades serving only that unit. After a loss it normally rebuilds and may bill you, as an assessment, for the parts you must insure, so size dwelling coverage for that bill. If you tour with one of the best real estate agents in Naples, ask for the master policy's declarations.
One switch changes the split. By a majority of the total voting interests, an association may opt out of the paragraph (j) common-expense rule and follow its declaration, effective when a notice is recorded in county records. Ask the association, and search the Lee or Collier clerk's records, before choosing limits.
Lenders add a floor of their own. Fannie Mae requires an HO-6 when the master policy excludes interiors or carries a per-unit deductible, with coverage at least the greater of the interior's value or that deductible. Our post on warrantable condos in Florida covers the rest of the lender rules.
A standard Florida HO-6 policy excludes flood, so a flood-caused condo assessment falls to the owner's flood policy. The NFIP Dwelling Form pays, up to its Coverage A limit, the owner's share of a loss assessment made because of direct physical loss by flood to the unit or common elements of an NFIP-insured building.
Data updated: November 2026 (sources named, retrieved 4 November 2026).
The Dwelling Form at 44 CFR Part 61, Appendix A(1) will not pay an assessment that results from the association's own flood deductible, an assessment by a government body, or a loss to personal property. The association's building flood policy, which tops out at $250,000 times the number of units, does not pay owners' assessments.
Paperwork can sink a claim. In a FEMA appeal after Hurricane Ian, a denial was upheld because the association's letter described "uninsured losses for property damages from Hurricane Ian" without showing the assessment was for flood damage. Ask the association to itemize any storm assessment: wind, flood and deductible.
Florida condo special assessments need written notice of the board meeting, mailed, delivered or emailed to owners and posted on the property at least 14 days ahead, stating the estimated cost and purpose under s. 718.112(2)(c), F.S. A special assessment, line of credit or loan for SIRS reserves needs a majority of all voting interests.
Data updated: November 2026 (sources named, retrieved 4 November 2026).
Since HB 913 (2025), whoever gives that notice signs an affidavit for the official records. Other assessments follow the declaration and bylaws; ask a Florida real estate attorney. Under s. 718.116(10), the written assessment notice must state its purpose, the money may be spent only on it, and any excess becomes common surplus.
The board decides whether to refund that surplus or credit it against future assessments, and the rule covers contingent assessments adopted with an insurance purchase. Our post on Florida condo law changes under HB 913 explains the 2025 funding rules.
Collection is strict under s. 718.116. A new owner is jointly and severally liable with the previous owner for assessments unpaid at transfer, with a right to recover from the seller, and must pay within 30 days or face a lien. Interest runs at 18 percent a year if the declaration sets none.
Under paragraph 3(c) of the Florida Realtors and Florida Bar Condominium Rider, CR-7, the seller pays in full, at or before closing, any special assessment levied by the Effective Date or between it and closing, unless Buyer is checked; a blank means Seller. An assessment counts as levied once approved as Florida law requires.
Data updated: November 2026 (sources named, retrieved 4 November 2026).
If the association lets a buyer assume installments, the seller pays those due by closing and, by default, the buyer pays later ones; if Seller is checked or assumption is not allowed, the seller pays it all. The seller also lists assessments levied or discussed at a board meeting in the prior 12 months.
Under Johnson v. Davis, a Florida seller must disclose known facts that materially affect value and are not readily observable, which can include a roof assessment the board has discussed. The estoppel must itemize assessments owed and those scheduled during its effective period. On another contract form, read its assessment clause.
Assessments differ from regular dues, which our post on Naples condo fees breaks down line by line, so read both the fee breakdown and the assessment notice before you set an offer price on a unit with a pending assessment.
IRS publications do not address Florida condo special assessments by name; the character of the work it funds decides the treatment. For a main home, IRS Publication 530 says improvements such as a new roof are added to basis and not deducted, and repairs are neither deducted nor added. Ask your CPA.
Data updated: November 2026 (sources named, retrieved 4 November 2026).
For a rental unit, IRS Publication 527 says repairs and maintenance may generally be deducted, while improvements that better, restore or adapt the property must be capitalized. Publication 547 limits personal casualty losses to federally declared disasters. The association's purpose notice is the paper your CPA will want.
HO-6 insurance in Lee County averaged $1,494 a year including wind and $1,061 excluding wind, and in Collier County $2,271 and $1,566, according to the Florida Office of Insurance Regulation's July 1, 2026 report on data as of March 31, 2026. Averages blend all buildings, so a Gulf-front unit can run higher.
Data updated: November 2026 (sources named, retrieved 4 November 2026).
Our arithmetic from the OIR report: wind adds about $433, or 29 percent, of the Lee average and about $705, or 31 percent, of Collier's. Neighboring Charlotte County averaged $1,394 and Sarasota $1,759. OIR publishes county figures only, so treat them as a starting point for Naples or Fort Myers budgets.
Citizens' July 1, 2026 rate change capped HO-6 decreases at 2 percent for primary policies. Insurance Journal reported on October 28, 2026 that Security First announced an average 7.3 percent HO-6 cut. Before our clients offer, we read the master declarations page, deductible and any recorded opt-out, then ask their agent to quote limits.
Florida requires at least $2,000, but the right limit depends on the master policy. Divide the association's hurricane deductible, minus what reserves would cover, by the units or by your ownership share, and compare that figure with your limit. Ask your insurance agent whether the policy pays assessments arising from the master deductible.
Raising it then will not help with that storm. Section 627.714(2), F.S., applies the loss assessment limit in effect 1 day before the occurrence that caused the loss, regardless of when the association later votes the assessment. Set the limit at purchase or renewal, before hurricane season, rather than when a storm approaches.
On the current CR-7 rider, the seller pays an assessment levied before closing in full unless the contract checks Buyer, though a buyer may take over later installments if the association allows assumption. The buyer also remains jointly liable to the association for anything unpaid at transfer, so check the estoppel before closing.
An owner's NFIP Dwelling Form policy can cover a condo special assessment caused by direct physical flood damage to the unit or the building's common elements, up to the policy's Coverage A limit. It will not pay an assessment from the association's flood deductible, so ask for an itemized storm assessment.
For a home you live in, IRS Publication 530 treats a new roof as an improvement added to basis rather than deducted. For a rental unit, IRS Publication 527 requires improvements to be capitalized and recovered over time. The IRS does not address condo association assessments by name, so ask your CPA before filing.
Every statute, rider clause, federal flood rule, IRS publication and premium report cited in this post appears, with its link, in the full source list on our Florida condo buyer guide.
Jesse McGreevy and Marc Comisar, Top 1% Real Estate Agents Nationally Since 2008 and Gulfshore Life Five Star award winners for 21 consecutive years, lead Domain Realty Group, the #1 real estate team in Southwest Florida since 2012. Brokered by Domain Realty. Call Jesse McGreevy at (239) 898-6072.
Updated November 2026. General information, not legal, tax, insurance or lending advice.
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