Condo insurance in Florida

The average annual cost of condo insurance in the U.S. is $531 per year, according to the National Association of Insurance Commissioners (NAIC), but Florida condos are likely to be more expensive than average due to the natural disaster risks Floridians face. However, your cost will depend on factors like how much coverage you need and where your condo is located.

Multiple factors will affect the cost of condo insurance in Florida. Commonly, these include:

• Location. Condos near the coast or in high-risk hurricane zones tend to have higher premiums.

• Building age and construction. Older buildings or those without storm-resistant features may cost more to insure.

• Unit value and size. Larger or upgraded units require more coverage, which increases premiums.

• Master policy coverage. The extent of your HOA’s insurance determines how much individual coverage you need.

• Personal property limits. More coverage for belongings like furniture and electronics raises your premium.

• Deductibles. Higher deductibles lower your premium but increase out-of-pocket costs in a claim.

• Liability limits. Higher liability limits provide more protection but cost more.

• Optional endorsements. Add-ons like flood, water backup, or loss assessment coverage can increase costs.

• Claims history. A history of frequent claims by you or your building may lead to higher premiums. 

There are some general rules of thumb for how much condo insurance you need in Florida: 

• Dwelling. It’s good practice to get at least enough coverage to replace the interior finishes (i.e. cabinetry, plumbing/lighting fixtures, wall coverings and floor coverings) of your condo unit if destroyed by a covered peril. 

• Personal property. Policies often cover the belongings inside your condo for at least 50% of your total dwelling coverage, though you can opt for more coverage. 

• Personal liability. You should have enough liability coverage to protect your assets (savings, real estate, etc.) if you are sued after an at-fault incident that injures someone or damages their property. Generally, you should have at least $100,000 to $300,000 in coverage, though you may need more based on your assets and net worth. 

• Medical payments. Home insurance covers medical bill payments for injuries sustained by guests, regardless of who is at fault. Limits are often set at $1,000 to $5,000. 

• Loss of use. This covers additional living expenses, such as lodging and meals, if you ever have to move out of your condo while repairs are made. Insurers often set this coverage at 20% of your total dwelling coverage. 

Condo insurance in Florida does not cover the following:

• Floods. Condo insurance policies do not cover damages caused by outside flooding. 

• Earthquakes. Condo insurance policies do not cover damages caused by earthquakes. 

• Wear and tear. Any damages caused by normal wear and tear or lack of owner upkeep will not be covered.

• Building exteriors. Condo insurance primarily covers the interior of your home. The condo association’s master policy should cover the building’s structure, exterior, other structures, and common areas. 

For a comprehensive understanding of policy limitations, discuss coverage with your insurer.

Condo owners in Florida should consider some of the following additional insurance types to protect their homes:

• Windstorm coverage. If your condo insurance policy doesn’t cover windstorm damage, you will want to buy a separate policy or add an endorsement to your existing policy. 

• Flood insurance. Florida has a high risk for floods, which aren’t covered by condo insurance. You can buy a separate policy from a private insurer or the National Flood Insurance Program. 

• Sinkhole insurance. This coverage can protect your condo from sudden depressions or land collapses, also known as sinkholes. Florida law requires that insurers offer sinkhole insurance, though it’s typically sold as a policy endorsement. 

Condo insurance in Florida does not cover things outside your individual condo unit. Typically, your condo association’s master policy will cover damages to the building’s exterior, roof, common grounds, and other structures around the property. 

Yes, coverage for loss assessment comes standard in most condo policies. It can help pay assessments for shared losses when those losses are caused by incidents your condo policy covers.

Condo insurance is not required by law, but your mortgage lender may require that you obtain it before you finalize your loan. Even if you don’t have a mortgage, your condo association may require you to have insurance up to a specific amount of coverage.