Buying your first condo in Florida is an exciting milestone, but understanding the condo insurance terms can feel overwhelming.
Policies are often filled with industry language, unique state requirements, and coverage options that may be unfamiliar to new buyers. Learning the most important terms can help you make informed choices, avoid hidden gaps in protection, and ensure your condo is covered long before any unexpected storm or accident occurs.
One of the most important terms you’ll come across is the HO-6 policy, which is the standard insurance form designed specifically for condo owners. Unlike a traditional homeowners policy, an HO-6 covers only the interior of your unit. This includes walls, floors, built-ins, and your personal belongings. Everything outside your unit, including the building structure and common areas, is insured by your condo association’s master policy.
The master policy itself may be “bare walls,” meaning it covers only the basic structural elements, or “all-in,” which includes built-in fixtures and sometimes even appliances. Understanding which type your community carries helps you determine how much interior coverage you personally need.
Another essential set of condo insurance terms includes dwelling coverage and personal property coverage. Dwelling coverage protects the parts of your condo you are responsible for, such as cabinetry, flooring, and upgraded finishes.
Personal property coverage protects your belongings, including furniture, clothing, and electronics. Most insurers allow you to choose between actual cash value (which subtracts depreciation) and replacement cost (which covers the price of a new item today). Replacement cost is generally the safer, more comprehensive option, especially when you consider the cost of replacing items after a storm, fire, or theft.
It’s also important to understand terms like loss of use and additional living expenses, which come into play if your condo becomes uninhabitable after a covered loss. These provisions help pay for temporary housing, hotel stays, meals, and other necessities while repairs are underway. This is a particularly important protection during Florida’s hurricane season.
Alongside that, personal liability and medical payments coverage protect you financially if someone is injured inside your unit or if you accidentally damage someone else’s property. Liability covers major expenses like legal fees or medical bills. Medical payments provide a small, no-fault benefit for minor injuries.
Because Florida faces unique weather risks, you’ll also encounter condo insurance terms related to storms, such as hurricane deductibles, windstorm coverage, and flood insurance.
A hurricane deductible usually ranges from 2% to 10% of your dwelling coverage and applies specifically to damage caused by a named storm. Windstorm coverage may be included in your policy or may require a separate endorsement, depending on your location.
Flood insurance is never included in a standard HO-6 policy, so if your building sits in a FEMA flood zone, or if you simply want peace of mind, you may need a separate flood policy through the National Flood Insurance Program or a private insurer.
One more important concept for condo owners is loss assessment coverage. In the event your condo association faces a major unexpected expense, such as storm damage to shared areas, legal fees, or major structural repairs, the cost may be divided among all unit owners through a special assessment. Loss assessment coverage helps cover your share of that bill and can be crucial in storm-prone regions where repair costs can escalate quickly.
Understanding these condo insurance terms helps first-time buyers make clearer, more confident decisions. By knowing what your HOA covers, what your personal policy must include, and how Florida’s unique risks affect your coverage needs, you can better protect your home, your belongings, and your financial stability.
Condo insurance doesn’t have to be confusing. Contacting an insurance expert allows you to walk through each element of your policy so you understand what is and isn’t needed for you. Once you understand the language, you’re far better prepared to secure the coverage that keeps your Florida condo safe.