How to Dispute a Florida Condo Association’s Insurance Claim Decision

Key Takeaways

• Florida law requires the association to bear reconstruction costs as a common expense after an insurable event. Under Section 718.111(11)(j), when association-insured property is damaged by an insurable event, reconstruction, repair, or replacement is a common expense — not a cost shifted to individual unit owners.
• Insurance deductibles are a common expense of the condominium, not an individual owner’s liability — unless the owner caused the damage. Section 718.111(11)(j) provides a narrow exception for damage caused by the unit owner’s intentional conduct, negligence, or failure to comply with association rules.
• The association has a duty to use best efforts to obtain and maintain adequate property insurance. Section 718.111(11)(d) imposes this obligation. An association that self-insures or goes bare may be acting in violation of this duty.
• Unit owners have the right to obtain copies of the association’s insurance policies, claim files, and adjuster reports. Section 718.111(12) gives owners the right to inspect and copy official records, including all insurance-related documents.
• Disputes about insurance claim decisions can be resolved through DBPR arbitration or circuit court. Section 718.1255 provides mandatory nonbinding arbitration as a presuit requirement for many disputes, but circuit court is also available for enforcement and damages.

In This Article

• Short Answer
• How Florida Law Handles This Issue
• Key Legal Rules
• Comparison Table: Association vs. Unit Owner Insurance Responsibility
• How This Issue Typically Comes Up
• Common Mistakes Associations Make
• What Associations Typically Argue — and Why It Fails
• How Courts Handle This
• Edge Cases and Nuances
• What Homeowners Should Do
• When Legal Action May Be Necessary
• Actionable Summary
• Related Knowledge — Cross-Chapter Linking
• Frequently Asked Questions
• Key Terms Defined
• Conclusion

Short Answer

When a Florida condominium association makes an insurance claim decision you believe is wrong — whether it refuses to file a claim, settles for less than repair costs, or charges the deductible to you individually rather than the association — Florida law gives you legal tools to push back. Section 718.111(11)(j) requires that damage to association-insured property caused by an insurable event be reconstructed at common expense. The deductible is also a common expense, with a narrow exception for damage caused by the owner’s negligence or misconduct. You have the right to inspect the association’s insurance policies and claim files, and you can challenge the association’s decision through DBPR arbitration or circuit court. A Hialeah, FL condo lawyer can help evaluate the association’s actions, enforce your rights, and pursue appropriate legal remedies.

How Florida Law Handles This Issue

Florida’s Condominium Act imposes detailed and specific requirements on how condominium associations must insure association property and handle claims. These rules protect unit owners from having reconstruction costs quietly shifted to them as individual expenses when they should be shared among all owners as a common expense.

The starting point is Section 718.111(11)(f), which establishes what the association must insure. The statute requires the association to obtain primary coverage for all portions of the condominium property as originally installed — including alterations or additions made pursuant to Section 718.113(2) — but specifically excludes items inside the unit:

“The coverage must exclude all personal property within the unit or limited common elements, and floor, wall, and ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments, including curtains, drapes, blinds, hardware, and similar window treatment components, or replacements of any of the foregoing which are located within the boundaries of the unit and serve only such unit. Such property and any insurance thereupon is the responsibility of the unit owner.”

Once an insurable event occurs, Section 718.111(11)(j) establishes the framework for who bears reconstruction costs:

“Any portion of the condominium property that must be insured by the association against property loss pursuant to paragraph (f) which is damaged by an insurable event shall be reconstructed, repaired, or replaced as necessary by the association as a common expense.”

The same subsection addresses how deductibles are allocated:

“All property insurance deductibles and other damages in excess of property insurance coverage under the property insurance policies maintained by the association are a common expense of the condominium, except that: 1. A unit owner is responsible for the costs of repair or replacement of any portion of the condominium property not paid by insurance proceeds if such damage is caused by intentional conduct, negligence, or failure to comply with the terms of the declaration or the rules of the association by a unit owner, the members of his or her family, unit occupants, tenants, guests, or invitees, without compromise of the subrogation rights of the insurer.”

This framework means the association cannot, as a default rule, charge a deductible to the individual unit owner whose unit was affected by the insured event. The deductible is a shared cost — except when the owner or their household members caused the damage through misconduct or negligence.

Unit owners in Miami-Dade, Broward, and Orlando-area condominiums frequently encounter association decisions that misapply these rules. Understanding the statutory baseline is the first step to disputing an improper decision.

Key Legal Rules

• Rule: The association must insure condominium property as originally installed. Exception: Items inside the unit — floor coverings, appliances, water heaters, window treatments, and similar built-ins — are excluded from association coverage and are the unit owner’s responsibility. Application: Review the association’s policy to determine exactly what is and is not covered before disputing a claim decision.
• When an insurable event damages association-insured property, reconstruction, repair, or replacement is a common expense. See Section 718.111(11)(j), Fla. Stat.
• The insurance deductible is a common expense of the condominium. An association may charge it to an individual owner only if the damage was caused by that owner’s (or their family’s, tenants’, guests’, or invitees’) intentional conduct, negligence, or failure to comply with the declaration or rules. See Section 718.111(11)(j)1, Fla. Stat.
• The association must use best efforts to obtain and maintain adequate property insurance at a reasonable cost. See Section 718.111(11)(d), Fla. Stat.
• Unit owners have the right to inspect and copy official records, including insurance policies, claim files, adjuster reports, and all communications with the insurer, within 10 working days of a written request. Failure to provide records triggers a $50/day penalty. See Section 718.111(12), Fla. Stat.
• The association’s officers and directors owe a fiduciary duty to the members. Choosing not to file a claim to avoid a premium increase, when filing would benefit unit owners, may constitute a breach of that duty.
• Disputes about insurance claim decisions may be submitted to DBPR mandatory nonbinding arbitration under Section 718.1255 or brought in circuit court for enforcement of the statutory and governing document obligations.

Comparison Table: Association Insurance Responsibility vs. Unit Owner Insurance Responsibility

Issue	Association (Chapter 718 / Policy)	Unit Owner (HO-6 Policy)
What is covered	All portions of condominium property as originally installed; alterations or additions made under Section 718.113(2)	Personal property inside the unit; floor, wall, and ceiling coverings; appliances; water heaters; water filters; built-in cabinets; window treatments; and similar items serving only the unit
What triggers a claim	Insurable event (storm, fire, water intrusion from common element pipe) damaging association-insured property	Loss to personal property or unit-interior fixtures excluded from association coverage
Who pays the deductible	Common expense of the condominium, shared among all owners through assessments	Owner pays their own HO-6 deductible; may also be charged association deductible if owner caused the insured damage by negligence or misconduct
Who controls the claim	Association files and manages the claim with its insurer	Owner files with their own HO-6 insurer for excluded property; may coordinate with association adjuster for covered-vs-excluded boundary questions
Reconstruction obligation	Association must reconstruct, repair, or replace as a common expense after an insurable event	Owner is responsible for replacing excluded in-unit items not covered by association policy

How This Issue Typically Comes Up

The association refuses to file a claim to avoid a premium increase

A pipe in the ceiling of a Miami-Dade condominium bursts, damaging the drywall and flooring in multiple units below. The board discusses the claim at a meeting and concludes that filing would trigger a substantial premium increase at renewal. Instead, the board passes a special assessment to pay for repairs out-of-pocket. Unit owners who object are told this is a “business decision.” Under Section 718.111(11)(j), reconstruction of association-insured property after an insurable event is a common expense, and the association’s obligation to maintain adequate insurance under Section 718.111(11)(d) does not permit it to self-fund repairs while declining to use the insurance it is statutorily required to carry.

The association settles for less than the cost of full repair

After a hurricane damages the roof and common areas of a Broward County condominium, the association accepts the insurer’s initial settlement offer without engaging a public adjuster or contesting the scope of the estimate. The settlement is $90,000 less than the contractor’s repair quote. The board levies a special assessment to cover the gap. Unit owners dispute the assessment, arguing the underpayment resulted from the board’s failure to adequately pursue the claim. The association’s fiduciary duty includes presenting a complete and accurate claim and challenging inadequate settlement offers when the gap is material.

The association charges the deductible to the individual unit owner instead of treating it as a common expense

A unit owner in an Orlando-area high-rise reports a water leak originating from a common element pipe serving multiple units. The association files a claim and then demands that the affected owner pay the $10,000 deductible, claiming the damage was “in your unit.” Unless the association can prove the damage was caused by the owner’s intentional conduct, negligence, or failure to comply with the declaration or rules, the deductible is a common expense under Section 718.111(11)(j) and cannot be shifted to the individual owner.

Common Mistakes Associations Make

• Refusing to file a claim because of concerns about premium increases. The association’s duty to maintain insurance and to bear reconstruction costs as a common expense is not subordinate to premium management strategy.
• Treating the insurance deductible as the individual unit owner’s liability as a default rule, without establishing that the owner caused the damage through negligence or misconduct.
• Failing to engage a public adjuster or legal counsel when the insurer’s initial settlement offer is significantly below the cost of required repairs.
• Excluding unit owners from claim-related information. Insurance policies and claim files are official records that owners are entitled to inspect under Section 718.111(12).
• Mischaracterizing what the association policy covers. Associations sometimes claim coverage extends to items inside the unit — such as flooring or appliances — to shift costs; other times they claim items are “inside the unit” to avoid filing a claim for damage to association-insured property.

What Associations Typically Argue — and Why It Fails

“Filing the claim would raise our premiums and cost everyone more in the long run.”

This argument does not override the association’s statutory obligation. The association is required to carry adequate insurance under Section 718.111(11)(d) and to reconstruct as a common expense after an insurable event under Section 718.111(11)(j). The board’s business judgment about future premium impacts does not license it to self-fund repairs while declining to use the insurance policy it is required to maintain.

“The damage is inside your unit, so it’s your responsibility.”

Whether damage is the owner’s responsibility depends on what the association’s policy covers — not where the damage physically appears. If the damage originated from a common element and the association’s policy covers the affected property, the reconstruction obligation and the deductible are common expenses. The owner’s HO-6 policy covers excluded items regardless of where they are located.

“You caused the damage, so you pay the deductible.”

The Section 718.111(11)(j)1 exception is narrow: the association must establish intentional conduct, negligence, or failure to comply with the declaration or rules by the owner, their family, occupants, tenants, guests, or invitees. A conclusory assertion by the board is not sufficient. If the association cannot prove causation, the deductible remains a common expense.

How Courts Handle This

Florida courts apply the plain language of Section 718.111(11) when evaluating insurance claim disputes. When the statute says reconstruction after an insurable event is a common expense, courts enforce that obligation. When the statute creates a narrow exception for owner-caused damage, courts require the association to establish causation — not merely assert it.

The DBPR arbitration process under Section 718.1255 handles a wide range of disputes between unit owners and associations, including disputes about the proper characterization of expenses and the allocation of insurance costs. Arbitrators apply the statute and the governing documents. An owner who demonstrates that the association improperly charged a deductible individually, when it should have been a common expense, typically prevails in arbitration.

Circuit courts handle disputes that fall outside the mandatory arbitration track — including claims for breach of fiduciary duty and injunctive relief. When an association refuses to file a claim or settles inadequately, circuit court provides a forum for damages and equitable relief.

In South Florida and the Tampa Bay area, insurance claim disputes are heavily litigated, particularly in the aftermath of hurricanes and major storms. Courts in these jurisdictions apply Section 718.111(11) strictly, with particular attention to the distinction between what the association must insure and what is the owner’s responsibility.

Edge Cases and Nuances

• Unit owner fails to report damage timely under Section 718.111(11)(j)4. The statute provides that a unit owner must report damage to the association within a reasonable time after discovering it. An owner who delays reporting and thereby prejudices the association’s ability to file a timely claim with its insurer may reduce their ability to require the association to treat reconstruction as a common expense. Prompt reporting is essential.
• Non-insurable events. Section 718.111(11)(j)’s requirement that reconstruction be a common expense applies specifically to damage caused by “an insurable event.” When damage results from a non-insurable event — such as gradual wear and tear, deferred maintenance, or an excluded cause — the normal maintenance and repair provisions of the declaration and Section 718.113 govern who bears the cost. The key question is whether the cause of loss was covered under the policy.
• Underinsured association. If the association’s policy is insufficient to cover the full cost of reconstruction, the gap — “other damages in excess of property insurance coverage” — is also a common expense under Section 718.111(11)(j). The association cannot shift the gap to individual unit owners by claiming it is their problem. The board’s duty to maintain adequate insurance means chronic underinsurance may itself support a claim against the board.
• HO-6 policy gaps. Unit owners who do not carry HO-6 insurance face exposure when their in-unit items — excluded from association coverage — are damaged. The boundary between what the association’s policy covers and what the owner must cover through their own HO-6 policy is defined by Section 718.111(11)(f)3 and the specific policy language. Owners should review both documents to ensure there are no coverage gaps.

What Homeowners Should Do

1. Request copies of the association’s insurance policies in writing under Section 718.111(12). The association must provide official records, including all property insurance policies, within 10 working days of your written request. Review what property is covered and what is excluded.
2. Request the claim file. Ask for the notice of claim, adjuster reports, insurer correspondence, settlement offer documents, scope of loss estimates, and all communications between the association and its insurer. These are official records subject to the same 10-working-day deadline.
3. Attend the board meeting where the claim or repair is discussed. Board meetings are open to members. Your presence creates a record and gives you an opportunity to ask questions about the claim decision and the allocation of costs.
4. Send a written demand to the board. Describe the specific decision you are disputing, cite Section 718.111(11)(j), and request a written response explaining the basis for the association’s position. Send by certified mail, return receipt requested, to both the association and its registered agent.
5. File for DBPR arbitration under Section 718.1255. If the association does not resolve the dispute after your written demand, DBPR mandatory nonbinding arbitration is available. An arbitrator will apply Section 718.111(11) and the governing documents to determine whether the association’s claim decision was proper.
6. Retain an attorney who represents unit owners. If the arbitration decision does not resolve the matter, or if the dispute involves breach of fiduciary duty or significant damages, circuit court litigation may be appropriate. An attorney can also help you navigate the boundary between what the association’s policy covers and what your HO-6 policy covers.

When Legal Action May Be Necessary

Legal action is appropriate when the association has refused to file a claim for damage to property it is required to insure, has settled a claim for materially less than the cost of required repairs without adequate justification, has improperly charged an insurance deductible to an individual unit owner without establishing that the owner caused the damage, or has denied records requests in violation of Section 718.111(12). Homeowners may seek enforcement of Section 718.111(11) through DBPR arbitration, circuit court, or both. Prevailing homeowners are entitled to recover attorney fees and costs under Section 718.303.

Actionable Summary

Situation	Your Right	Legal Basis
Association refuses to file a claim for covered damage	Association has a statutory duty to maintain insurance and reconstruct as a common expense after an insurable event	Section 718.111(11)(d) and (j), Fla. Stat.
Association settles claim for less than repair cost	Association owes fiduciary duty to pursue adequate recovery; gap is a common expense, not owner’s individual liability	Section 718.111(11)(j); fiduciary duty under Section 617.0830
Association charges deductible to individual owner	Deductible is a common expense unless owner caused the damage by negligence or misconduct	Section 718.111(11)(j)1, Fla. Stat.
Association denies access to insurance records	Official records must be provided within 10 working days; $50/day penalty for noncompliance	Section 718.111(12), Fla. Stat.
Association disputes what its policy covers vs. owner’s responsibility	Association policy must cover originally installed property; in-unit items and upgrades are owner’s responsibility	Section 718.111(11)(f)3, Fla. Stat.

Related Knowledge — Cross-Chapter Linking

Chapter 718 (Condos): Section 718.111(11) contains the detailed statutory insurance mandate applicable to condominium associations. The association must obtain primary coverage for all originally installed condominium property, use best efforts to maintain adequate insurance, and treat reconstruction after an insurable event as a common expense. Deductibles are common expenses unless owner-caused damage applies. DBPR arbitration under Section 718.1255 is available for dispute resolution.

Chapter 720 (HOAs): Chapter 720 has no equivalent statutory insurance mandate for homeowners associations. HOA insurance obligations, if any, are defined by the governing documents — typically the declaration of covenants and the association’s bylaws. Unit owners in HOA communities should consult their governing documents rather than Chapter 720 for insurance coverage requirements. The enforcement mechanisms under Section 720.305(1) apply to violations of the governing documents, not a statutory insurance mandate comparable to Section 718.111(11).

Frequently Asked Questions

Can the association simply decide not to file an insurance claim if it thinks filing would cost more in the long run?

Generally, no. Section 718.111(11)(d) requires the association to use best efforts to obtain and maintain adequate property insurance, and Section 718.111(11)(j) makes reconstruction after an insurable event a common expense. A board decision to self-fund repairs while declining to use the required insurance may breach the association’s statutory obligations and the board’s fiduciary duty to the members.

If my unit was damaged by a common element pipe, who pays the deductible?

The deductible is a common expense of the condominium under Section 718.111(11)(j), not your individual responsibility — unless the association can establish that the damage was caused by your intentional conduct, negligence, or failure to comply with the declaration or rules. A pipe failure in the common elements of the building, unrelated to any action or inaction on your part, does not satisfy the exception.

What if the association’s insurance settlement does not cover the full cost of repairs?

Under Section 718.111(11)(j), “other damages in excess of property insurance coverage” are also a common expense. The gap between the settlement and the repair cost is shared among all unit owners through assessments, not charged to the individual owner whose unit was damaged. If the gap results from the association’s failure to adequately present the claim, the board may have breached its fiduciary duty.

How do I get access to the association’s insurance policies and claim documents?

Under Section 718.111(12), insurance policies and claim files are official records of the association. You are entitled to inspect and copy these records upon written request. The association must respond within 10 working days. If it fails to do so, a $50-per-day penalty applies, and you may bring an action to compel access.

What is DBPR arbitration and when does it apply?

DBPR arbitration under Section 718.1255 is a mandatory nonbinding arbitration process administered by the Florida Department of Business and Professional Regulation. Most disputes between unit owners and condominium associations — including disputes about the proper allocation of insurance costs — must go through DBPR arbitration before circuit court litigation. The arbitration process is faster and less expensive than court, and the arbitrator’s decision is nonbinding, meaning either party can demand a trial de novo in circuit court within 30 days of the decision.

Key Terms Defined

Insurable event: A loss or occurrence — such as a storm, fire, or water intrusion — that is covered by the association’s property insurance policy. Under Section 718.111(11)(j), damage caused by an insurable event triggers the association’s obligation to reconstruct as a common expense.

Common expense: A cost allocated among all unit owners of the condominium and funded through regular or special assessments. Under Section 718.111(11)(j), both reconstruction after an insurable event and insurance deductibles are common expenses, subject to the narrow exception for owner-caused damage.

HO-6 policy: A homeowner’s insurance policy designed for condominium unit owners. An HO-6 policy covers personal property inside the unit and items excluded from the association’s master policy under Section 718.111(11)(f)3, such as floor coverings, appliances, water heaters, and built-in fixtures.

Subrogation: The insurer’s right, after paying a claim, to stand in the shoes of the insured and pursue recovery from the party responsible for the loss. Section 718.111(11)(j)1 provides that any individual unit owner liability for owner-caused damage is imposed “without compromise of the subrogation rights of the insurer.”

DBPR arbitration: Mandatory nonbinding arbitration administered by the Florida Department of Business and Professional Regulation under Section 718.1255. A presuit requirement for most disputes between unit owners and condominium associations. The arbitrator’s award is nonbinding; either party may demand a de novo trial in circuit court within 30 days.

Conclusion

Florida’s Condominium Act gives unit owners a clear statutory framework for challenging an association’s insurance claim decision. When the association-insured property is damaged by an insurable event, Section 718.111(11)(j) requires reconstruction as a common expense. The deductible is also a common expense unless the owner caused the damage. These rules are not suggestions — they are mandatory statutory requirements. If your association is refusing to file a claim, settling for less than full repair costs, or improperly charging you a deductible, you have the right to inspect the claim file, challenge the decision through DBPR arbitration or circuit court, and recover attorney fees if you prevail.

About the Author

Michael P. Mayoral, Esq. (Florida Bar No. 112080) is a co-founder of Perez Mayoral, P.A. and leads the firm’s homeowner-side property damage and insurance dispute practice. He represents unit owners in condominium insurance claim disputes, common element damage cases, and assessment challenges throughout Florida. He has been featured by NBC Miami, the Daily Business Review, and the Sun Sentinel on condominium law issues and is the author of a LexisNexis practice guide on Florida condominium disputes.

How We Can Help

If your condominium association is refusing to file a claim, improperly charging you the insurance deductible, or failing to reconstruct damaged property as a common expense, the attorneys at our firm can review your policy documents, claim file, and governing documents and pursue the association’s obligations on your behalf. We represent homeowners and unit owners only. We never represent associations. Our offices are in Coral Gables, Tampa, and Orlando.

Contact Perez Mayoral, P.A. to schedule a consultation.

Disclaimer: This blog post is provided for general informational purposes only and does not constitute legal advice. Reading this post does not create an attorney-client relationship. Laws change; consult a licensed Florida attorney for advice specific to your situation.

Sources and References

• Section 718.111(11), Florida Statutes (Insurance Requirements)
• Section 718.111(12), Florida Statutes (Official Records)
• Section 718.1255, Florida Statutes (DBPR Arbitration)
• Section 718.303, Florida Statutes (Obligations; Prevailing Party Fees)
• Section 718.113, Florida Statutes (Maintenance)
• Section 720.305, Florida Statutes (HOA Enforcement)