You found a Brickell condo you love, but the HOA’s “master insurance” still feels like a mystery. You are not alone. In Miami high‑rises, coverage boundaries, hurricane deductibles, and assessment risk can be confusing. This guide breaks down what the association insures, what you must cover, and how to avoid surprise bills after a storm or water loss. Let’s dive in.
Master policy basics in Florida
A condo association’s insurance is often called the master or association policy. It is written in the association’s name and insures the building and common elements as defined in the condo declaration. Florida condominium law sets the framework for what associations must insure and how losses are handled. You can review the statutory framework in Florida Statutes Chapter 718.
There is no single standard policy. Coverage depends on three things: your building’s declaration, the insurance policy wording, and any endorsements the association has added. In Brickell, where towers have complex systems and large insured values, small wording differences can have big dollar impacts.
Brickell high‑rises face hurricane and windstorm exposure and rely on shared systems like elevators, central HVAC plants, and parking structures. That is why you should understand what the master policy includes, which items fall to you, and how deductibles flow to owners.
What master insurance usually covers
While every policy is different, most association policies include:
- Building property. Structural components and common building systems, such as exterior walls, roof, framing, plumbing risers, elevators, foundations, parking structures, and common‑area finishes.
- Common personal property. Association‑owned items like lobby furnishings and gym equipment.
- Valuation. Many policies insure buildings at replacement cost. Some may use actual cash value for certain property.
- Equipment breakdown. Often included or endorsed for critical mechanical and electrical systems.
- Liability for common areas. Protects the association from claims in shared spaces.
- Directors and officers (D&O) and fidelity bonds. These are typically separate policies that protect the board and against theft, not part of the property policy.
- Ordinance or law coverage. Sometimes included or endorsed to cover extra costs to meet current code when repairing a loss. Limits may apply.
For a plain‑language overview of how association coverage and unit‑owner coverage interact, the Insurance Information Institute offers helpful consumer guidance.
What is often excluded or limited
Coverage boundaries inside the unit vary and are defined by your declaration and policy.
- Unit interiors and improvements. Many master policies insure only items that were “originally installed,” and they exclude owner‑paid upgrades like new flooring, cabinets, built‑ins, and fixtures. Some buildings use an “all‑in” approach that insures interiors to the defined surface. Others use a “bare walls” approach that shifts most interior finishes to the owner. Your documents decide which applies.
- Glass and glazing. In high‑rises, windows and sliders can be limited, excluded, or subject to a separate deductible. Confirm whether the master policy covers your unit’s glazing.
- Flood. Standard property policies exclude flood. Brickell’s flood exposure is real. Building flood may be purchased by the association, but contents inside units require separate coverage. Learn more from FEMA and the NFIP.
- Sewer backup and water intrusion. Backup from sewers or sumps is typically excluded unless endorsed. Water infiltration and mold can be limited.
- Ordinance and law sublimits. Code upgrade costs can be capped. Miami‑Dade wind and elevator codes can drive higher repair costs.
Florida’s consumer pages explain these basics and the importance of reading policy terms. You can explore general guidance at the Florida Chief Financial Officer’s site.
Why deductibles matter in Brickell
Florida associations often carry a hurricane or windstorm deductible set as a percentage of the building’s insured value instead of a flat dollar amount. In the market, these percentages are commonly in the low single digits, but Brickell buildings can have insured values in the tens or hundreds of millions. The result is a large dollar deductible before insurance pays.
Here is a simple example to illustrate the math. If a building’s insured value is $100 million and the hurricane deductible is 2 percent, the association must cover the first $2 million of covered wind damage. That deductible must be funded by reserves, operating cash, loans, or assessments to owners.
Other deductibles can include fixed amounts for non‑wind water damage and a separate glass deductible. The exact structure appears in the master policy.
Who pays the deductible? The association is responsible for repairs to insured property, subject to policy terms. Many declarations and Florida law allow the association to pass the deductible and uninsured costs to owners through special assessments, usually based on unit shares. The specific allocation method is set by the declaration and state law. For more on hurricane deductibles and consumer guidance, visit the Florida CFO’s resources.
Reserve funding makes a difference. Some associations build reserves to soften a deductible hit. Others do not. Before you buy, review the latest audited financials and any reserve study to see how the building plans for disaster costs.
For broader context on Florida’s property insurance landscape and why associations structure coverage the way they do, you can visit Citizens Property Insurance Corporation.
How your HO‑6 should fill gaps
A unit‑owners policy, called HO‑6, fills the gaps between the master policy and your personal risk. In Brickell, the right mix of coverages and endorsements is essential.
Core HO‑6 coverages you should consider:
- Dwelling improvements and alterations. Covers owner‑paid interior finishes and fixtures that the master policy may not insure.
- Personal property. Insures your belongings.
- Loss of use or Additional Living Expenses. Pays for temporary housing if your unit is uninhabitable after a covered loss.
- Personal liability. Protects you if someone is injured inside your unit.
Critical endorsements to discuss with your insurance agent:
- Loss assessment coverage. Helps pay your share of a special assessment after a covered association loss, including certain deductibles depending on wording. Brickell owners often consider higher limits due to large percentage deductibles.
- Building ordinance or Increased Cost of Construction. Helps bring interior repairs up to current code if the master policy lacks sufficient ordinance coverage.
- Water backup endorsement. Adds coverage for sewer or sump backup that is commonly excluded.
- Deductible reimbursement or assessment deductible options. Some carriers offer endorsements that reimburse your portion of the association’s deductible for named perils, subject to terms.
- Flood insurance. Standard policies exclude flood. Ask whether the association carries building flood and consider contents flood coverage for your unit through the NFIP or private markets. Start with FEMA’s NFIP resources.
- Loss of rent. If you plan to lease your unit, insure lost rental income if a covered loss makes the unit uninhabitable.
For a consumer overview of HO‑6 policies and how they coordinate with association insurance, review the Insurance Information Institute’s guidance.
Buyer due diligence checklist
Request these documents early in your offer or inspection period so you can confirm coverage and potential assessment risk:
- Declaration of condominium and bylaws. Identify what is a unit vs. a common element and how deductibles are allocated.
- Full master policy and endorsements. Do not rely on a certificate alone. Verify covered perils, limits, valuation basis, and deductibles, especially for named storm or hurricane.
- Current certificate of insurance. Confirms carrier, policy dates, and limits.
- Recent board and insurance committee minutes. Look for pending claims or insurance changes.
- Latest audited financials and reserve study. Gauge the association’s ability to fund a deductible.
- Building claims history. See frequency and severity of recent losses.
- Flood zone information and any building flood policy. Note the limit and deductible.
Ask the association or manager:
- Is the master policy “all‑in” or “bare walls”? What interior elements are the owner’s responsibility?
- What are the hurricane and windstorm deductibles? Are there separate deductibles for water, glass, flood, or equipment breakdown?
- What is the building’s insured replacement value? Use it to calculate the dollar impact of percentage deductibles.
- Does the master policy include ordinance or law coverage and equipment breakdown? Any sublimits?
- How are special assessments handled after a loss? Are there reserve funds or a deductible stabilization plan?
- Have any recent endorsements shifted more responsibility to owners?
Ask your insurance agent:
- Based on the master policy, what HO‑6 limits and endorsements do you recommend for my unit?
- Is a deductible reimbursement or assessment endorsement available with my carrier?
- If I plan to rent, what additional coverages do I need?
- Which carriers understand Brickell high‑rise exposures like glazing and wind risk?
Quick real‑world scenarios
Use these examples to stress‑test your coverage plan:
- Pipe leak above your unit. The master policy may repair building systems and common elements. Your HO‑6 would address your interiors and contents if the master policy excludes them, subject to your deductible and limits.
- Storm damage to windows. If glazing is excluded or has a separate deductible under the master policy, you may need HO‑6 glass coverage and sufficient loss assessment coverage for any shared deductible.
- Large hurricane loss. A percentage hurricane deductible can trigger a sizable special assessment if reserves are insufficient. Strong loss assessment coverage and, where available, a deductible reimbursement endorsement can help.
- Building code upgrades. Repairs that trigger code upgrades may exceed the master policy’s ordinance limit. An HO‑6 ordinance endorsement can help with interior compliance.
Final take for Brickell buyers
The master policy protects the building and common areas, but the line between association and owner responsibility shifts from tower to tower. In Brickell, percentage hurricane deductibles tied to very high insured values can lead to large assessments if reserves fall short. The smartest move is to confirm whether the policy is all‑in or bare walls, know the exact deductibles, and build your HO‑6 around those gaps with the right endorsements.
If you want a second set of eyes on documents or need referrals to insurance pros who understand Brickell high‑rises, reach out. When you are ready to tour condos or compare buildings, connect with Rebecca Sundel for local guidance and a plan that fits your lifestyle and risk comfort.
FAQs
What does an HOA master policy cover in a Miami condo?
- It usually covers the building structure and common elements as defined in the declaration and the policy, with specifics varying by building and insurer.
How do hurricane deductibles work for Brickell buildings?
- Many policies use a percentage of the building’s insured value, so even a low percentage can equal a large dollar deductible that may be assessed to owners.
What is the difference between all‑in and bare walls coverage?
- All‑in insures unit interiors to a defined surface, while bare walls shifts most interior finishes to the owner; your declaration and policy decide which applies.
Does condo insurance cover flood in Brickell?
- Standard property and HO‑6 policies exclude flood; building flood may be separate and contents flood coverage is typically purchased through the NFIP or private markets.
What HO‑6 endorsements should a Brickell condo owner consider?
- Common picks include loss assessment, ordinance or law, water backup, glass coverage, deductible reimbursement options, and flood coverage for contents.
