Question 1

Can you explain my wind deductible?

Accepted Answer

Hurricane
 • Activated by a hurricane watch or warning in any part of Florida, this deductible lasts 72 hours following the termination of the last hurricane watch or hurricane warning issued for any part of Florida by the National Hurricane Center.
 • Typically 2% to 5% of the insured value, it can be "Calendar Year," "Occurrence," or "Annual Aggregate" based.
Named Storm
 • Similar to the hurricane deductible, it applies to any watch/warning for a named storm, not just hurricanes.
 • Think of Tropical Storms, Tropical Depressions
Wind/Hail
 • Covers any wind or hail damage, including hurricanes, named storms, tornadoes, etc., on an "Occurrence" basis.
All Other Wind
 • Covers all other wind not  specified in your policy.
 • For example, if you have a 5% Hurricane deductible and a 1% All Other Wind deductible, non-hurricane wind damage incurs a 1% deductible. It operates on an occurrence basis.

Question 2

When does my hurricane deductible apply?

Accepted Answer

1) Beginning at the time a hurricane watch or warning is issued for any part of Florida by the National Hurricane Center. Remember, it must be a “hurricane” declared by the National Hurricane Center; and

2) Ending 72 hours following the termination of the last hurricane watch or hurricane warning issued for any part of Florida by the National Hurricane Center.

Question 3

Calendar year vs. Per Occurrence Deductibles?

Accepted Answer

Calendar Year:
 • Hurricane or named storm deductible may be written on a calendar year basis. 
 • This means If you are insured by the same insurance company, the hurricane deductible applies on an annual basis to all covered losses which occur during the calendar year.  In other words, the deductible diminishes as you accumulate damage from each named storm in the calendar year
 • The deductible for the second hurricane will be the greater of: 
1. The amount left over from the first hurricane deductible, if the deductible wasn’t fully met, or 
2. The “all other perils” or "all other wind" deductible as stated on the policy.

Per Occurrence:
 • The deductible applies separately to each individual occurrence or event that triggers a claim.
 • For example, if a condominium association has a per occurrence deductible of $50,000 for hurricane damage and the association experiences damage from two separate hurricanes in the same policy period, they would have to pay the $50,000 deductible for each hurricane event.
 • In essence, "per occurrence" specifies that the deductible is applied on a per-event basis rather than cumulatively over a period of time.
 • Typically all other perils  & all other wind deductibles are per occurrence. Sometimes named storm or hurricane can be as well, although not ideal.

Example: Named storm deductible is 5% of a $1M property ($50,000). All other wind Deductible is $10k. The first storm hits June 15th and causes $35K in damage. Second Hurricane hits October 15th. What is the deductible for the October 15th hurricane if the deductible is  1.) Calendar Year; or 2.) Per Occurrence

• Calendar year: The deductible is $15k. $35k was used up in the first storm.

• Per Occurrence: The deductible is $50,000 for the second storm and each & every storm following it.

Question 4

What is Ordinance or Law?

Accepted Answer

Ordinance or law coverage is an endorsement to your property insurance that covers the costs of rebuilding/repairing your property up to current building standards after a covered loss.

There are 3 parts:

A) Undamaged Portion – Typically, insurance policies only cover the damaged portion of your property. However, sometimes building code requires that you repair/replace the undamaged portion as well. Example: 50% of a roof is damaged but code requires full reroof.

B) Demolition – Cost for Demolition/removal of that undamaged portion.

C) Increased Cost of Construction – Increased cost of bringing up to code following a loss. Example: Hurricane Impact Glass

Question 5

In Florida, how often must I have an insurance appraisal done for the association?

Accepted Answer

The State of Florida’s Condominium Act (Florida Statutes Chapter 718.111[11]) requires condominium associations to have an independently prepared insurable value appraisal every three years.

Adequate property insurance, regardless of any requirement in the declaration of condominium for coverage by the association for full insurable value, replacement cost, or similar coverage, must be based on the replacement cost of the property to be insured as determined by an independent insurance appraisal or update of a prior appraisal. The replacement cost must be determined at least once every 36 months.

Question 6

What are the main policies my association should have?

Accepted Answer

Here are some of the major policies you should have as part of your insurance program:

1. Property Insurance: This policy typically covers physical damage to buildings and structures caused by perils such as fire, windstorms, vandalism, and other covered events. Property insurance typically constitutes the largest portion of an association's insurance premium.
2. General Liability:  Think Slips, trips, & falls. Provides coverage for third-party bodily injury and property damage claims arising from accidents or incidents that occur on the association's premises or as a result of its operations.
3. Equipment Breakdown: also known as machinery breakdown insurance or boiler and machinery insurance, provides coverage for sudden and accidental breakdowns of essential equipment and systems. Does not include wear & tear.  This can include HVAC systems, elevators, boilers, electrical panels, pumps, and other critical machinery.
4. Crime: Insures the associations money to protect against financial losses resulting from various criminal acts and fraudulent activities.
5. Directors & Officers: provides coverage for the personal liability of board members, officers, and directors arising from their decisions and actions while serving on the board. It is is essential for protecting the personal assets and financial well-being of board members. 
6. Umbrella: Basically, this is extra coverage. When the limits of your General Liability and Directors and Officers Liability are exceeded, umbrella insurance provides excess/extra coverage.
7. Workers Comp: associations should have their own workers' compensation insurance so if a contractor’s insurance policy doesn’t have the proper coverage, the association’s own policy can fill in the gaps. Anyone working on a property is considered a for-hire worker and therefore the remedy for injury is covered by workers’ compensation insurance.
8. Flood:  Flood typically covers damage caused by rising water. This includes water from overflowing rivers, lakes, or oceans, as well as heavy rainfall that leads to flooding.

Question 7

What is SIRS?

Accepted Answer

The SIRS (Structural Integrity Reserves Study) is a reserve study determining the necessary reserve funds for future major repairs and replacements of common area elements.

It was created in response to the Champlain Towers South building collapse in Surfside Florida via Florida Senate Bill 4-D in May 2022 and Florida Senate Bill 154 in June 2023. (See attached SB 4-D summary & SB 154 Summary)

Question 8

What components must be considered in a SIRS study?

Accepted Answer

1. Roof
2. Structural Systems
3. Fireproofing & Fire Safety
4. Exterior Painting and Waterproofing
5. Plumbing
6. Electrical Systems
7. Windows & Exterior Doors
8. Other elements over $10,000 impacting the structural integrity of a building.

Question 9

When must a SIRS be completed?

Accepted Answer

The legislation mandates that condo associations in existence on or before July 1, 2022, complete their initial SIRS by the end of 2024. Subsequent SIRS studies must be conducted every 10 years. This timeframe has not changed significantly, except for potential extensions under certain circumstances.

Question 10

Which condo buildings need a SIRS?

Accepted Answer

SIRS must be commissioned for all buildings 30 years of age or older with three stories or more.

Any three-story or higher buildings within three miles of the coastline must have a SIRS completed for any buildings 25 years of age or older.

Question 11

What is a milestone report?

Accepted Answer

A “milestone inspection” is a structural inspection of a building, including load-bearing walls and other elements that are designed to support the building.

During phase one of the milestone inspection, There is a visual examination of the habitable and non-habitable areas of a building, including its major structural components, and provide an assessment of the structural condition of the building. If the architect or engineer finds no signs of substantial structural deterioration, phase two of the inspection is not required.

Phase two of the milestone inspection must be performed if any substantial structural deterioration is identified during phase one. A phase two inspection may involve destructive or nondestructive testing at the inspector’s direction. The inspection may be as extensive or as limited as necessary

Question 12

When does the milestone report need to be completed?

Accepted Answer

• The law requires that a condominium or cooperative must have a "milestone inspection" performed for each building that is 3 stories or more by December 31st of the year in which the building reaches 30 years of age, and again every 10 years thereafter. 
 • If the building is located within 3 miles of a coastline, the inspection must be performed by December 31 of the year in which the building reaches 25 years of age, and every 10 years thereafter.

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