How do you protect and pay for storm damage for a property that technically belongs to a condo full of people? Hurricanes and storm damage in Florida are an annual concern. And condo owners share more than hallways and swimming pools, which raises questions about who pays when property gets damaged. But Florida Statute 718 holds the key to understanding who’s responsible for what if a hurricane hits.
Hurricanes have caused billions of dollars worth of damage nationwide in the last decade. However, Florida has taken the brunt of the abuse. And unfortunately, storm damage is usually inevitable when it comes to a hurricane. And this raises many questions if you live in a condo that has an HOA. That question is “who pays for hurricane damage in a HOA?”
Florida Statute 718 sets ground rules for insurance obligations regarding condominium communities, ensuring a fair division of responsibilities. There is always a chance you may pay an unfair portion of the bill if you don’t know and understand the laws.
That is why its a good idea for every condo owner to read what Florida Statute 718 says about shared roofs, interior walls, windows, and hurricane aftermath. Having a good understanding on who pays what, how to stay compliant, and why hurricane shutters or impact windows may be the best investment for the entire building.
Shared Responsibilities: Florida Statute 718 Insurance Basics for Condos
Owning a condo means being part of a community that is responsible for sharing the costs of maintenance and damage. This raises questions and frustrations sometimes, especially if you are paying for damage that is not your in your unit and not your fault.
Florida Statute 718 helps to put structure to the chaos. In a nutshell, it makes condo associations responsible for common communal (shared) elements, like roofs, lobbies, elevators, structural components, and plumbing pipes. If you share it with someone else (or many other people), it is probably covered under the HOA’s master policy.
Here’s the challenge: that condo insurance you’re responsible for (your HO-6 policy) covers your individual unit. It is for anything from drywall to flooring, fixtures, and personal belongings. For example, a hurricane tears off your shared roof, and water damages your hardwood floors. The association’s insurance would cover the roof. Your HO-6 policy would cover the damage to your units, such as your floors, drywall or other things. Of course, your policy has deductibles and limitations as well, which you should understand as well.
The division of responsibility ensures everyone carries a fair share of the insurance load. However, it also means you need to know exactly where the association coverage ends and where your HO-6 policy coverage begins.
What Florida Statute 718 Says About Insurance Obligations
Florida Statue 718 is a detailed roadmap with requirements for condo insurance responsibilities. The HOA’s master policy will handle things like:
- Structural components – (roofs, walls, and foundations).
- Shared systems – like plumbing and electrical infrastructures.
- Community amenities – (pools, gyms, and lounge rooms or lobbies).
As a condo owner, your insurance responsibilities include:
- The “drywall-inward” components – including interior walls, ceilings, floors, and finishes.
- Personal belongings – like furniture, electronics, and clothing.
- And potentially, liability for any damage caused by your negligence.
Why does the division of responsibility exist? Florida Statute 718 requirements are designed to protect the condo community while also holding individuals accountable for their space and belongings.
However, disputes can arise, especially when damage falls into a “gray” area, like a leaky pipe or hurricane-damaged interior wall between units.
Covering the Costs: What You’re Responsible For (and What You’re Not)
The bad news is that just because you share ownership of a building doesn’t mean you share costs equally. When disaster strikes, condo owners may still face significant out-of-pocket expenses, even with their HO-6 insurance.
- Deductibles. The condo association’s master policy deductible is often split among condo owners. The higher the deductible, the heftier your part of the bill.
- Improvements. If you’ve upgraded your condo (like installing luxurious kitchen cabinets or imported floor tiles), you’re responsible for covering the difference between standard finishes and upgrades.
- Negligence. Did you forget to install hurricane shutters or repair a faulty window? If your oversight leads to damage, the condo association may hold you accountable for negligence, meaning you pay more.
Florida Statute 718 requirements are precise on one thing: preparation pays off. Understanding your insurance coverage can prevent nasty financial surprises after a hurricane.
Hurricane-Specific Coverage: Wind Damage, Flooding, and Beyond
Hurricanes bring an onslaught of intense wind, rain, and flooding. Florida Statute 718 requires condo associations to insure against wind damage. However, whether the HOA has flood insurance coverage may depend on several factors.
Here’s a breakdown of hurricane-specific coverage.
- Wind Damage. Most condo policies, master and HO-6, cover wind damage because it’s one of the leading causes of hurricane destruction. Different HOAs and insurance carriers may vary so it is best to confirm coverage with bot your HOA and your HO-6 insurance carrier.
- Flooding. Flood insurance is most often separate. While some condo associations are covered, many leave it up to individual owners. If your condo is in a flood zone, you can secure a personal policy through the National Flood Insurance Program (NFIP) for optimal protection. While not paying for flood insurance will save some money; it leaves HOAs and individual owners exposed to more risk.
- Debris Damage. Flying debris often breaks windows and damages exteriors. This is where hurricane shutters and impact windows shine. They protect your condo, earning you insurance discounts that cut HO-6 costs. Your HOA may restrict the types of hurricane you can install on your unit. Make sure to read our guide on Understanding HOA Restrictions on Hurricane Shutters
Florida Statute 718 requirements are a financial lifeline for many condo associations and owners, especially with hurricanes causing over $60 billion in wind and flood damage annually.
Insurance Requirements Tied to Hurricane Mitigation Features like Shutters
Florida Statute 718 requirements don’t specifically outline demand for hurricane shutters. However, there are requirements for reasonable storm mitigation, meaning condo associations may strongly encourage hurricane shutters, impact windows, or both.
According to the Insurance Information Institute, condos with hurricane shutters can see 15% or more in premium reductions. This is a win-win situation: fewer storm-related headaches and lower insurance costs. However, non-compliance rules (whether skipping shutters or choosing an unapproved design) can lead to penalties and coverage problems.
At the same time, most HOAs will restrict or put strong guidelines on the type of hurricane protection you can add to your unit. While they cannot outright refuse to allow you to install hurricane protection they do have a strong say over which kind you can use. For instance, your HOA may only allow impact windows and not allow hurricane shutters at all. Or they may allow one kind and color of hurricane shutters for every unit. These guidelines are set by your HOA. In turn, it is a good idea to understand them before spending money on something you cannot use.
Hurricane Protection Pays for Itself in Reduced Damage and in Peace of Mind.
Hurricane Protection: Eurex Shutters Can Help Your Condo Stay Protected
When hurricane season looms from June to November, preparedness is everything. This is true when living in a condo governed by Florida Statute 718 requirements. Luckily, Eurex Shutters has 38+ years of working with both HOAs and condo owners. We specialize in HOA-compliant, Florida Product Approved impact windows and hurricane shutters in Fort Myers, Cape Coral, Naples, and throughout Southwest Florida. We can help you safeguard your property while adhering to HOA rules.
At Eurex Shutters, we offer various roll-down, accordion, and Bahama hurricane shutters as well as impact windows. All products are hurricane-rated and offer top-tier protection against wind, water, and flying debris. We help you establish trust and compliance with your condo association to keep insurance premiums lower while protecting your space. Stay one step ahead of the storm with Eurex Shutters!