What is an insurance appraisal?
An insurance appraisal is an independent report that estimates what it would cost to rebuild an association’s buildings if they were destroyed. That number is called the replacement cost, and insurance companies use it to set how much property coverage the association buys.
In Florida, every condominium association must carry adequate property insurance based on the replacement cost of its property. Florida law also requires that replacement cost to be determined at least once every three years, through a new appraisal or an update of a previous one. (Florida Statutes, section 718.111(11))
An appraisal does not value everything on the property, though. The association’s policy also does not cover everything inside each home. Boards and owners both need to know what is included and what is not, so nothing goes uninsured.
What does an insurance appraisal cover?
An insurance appraisal covers the buildings and structures the association is responsible for insuring. It estimates the cost to rebuild them new, using current labor and material prices.
For a condominium, the appraisal usually includes:
- The buildings: framing, exterior walls, roof, windows, doors, balconies, stairways, and walkways.
- Original construction inside the units: interior walls and ceilings as they were first built, but not the finishes on them.
- Building systems: plumbing, electrical wiring, fire sprinklers, alarms, and elevators that serve the building.
- Other association structures: a clubhouse, pool building, carports, garages, or storage buildings.
Prestar can also add two extra values to the report:
- A flood value, which your insurance agent can use when setting flood coverage limits.
- A Law and Ordinance value, which estimates the extra cost to rebuild to today’s building codes. Codes change over time, and a badly damaged building may have to be rebuilt to the current code.
What does an insurance appraisal not cover?
An insurance appraisal leaves out items that property insurance normally does not cover, and items that someone other than the association insures.
Items most appraisals exclude because they are not normally insured:
- Land. Land does not need to be rebuilt after a fire or storm, so it is not part of the replacement cost.
- Foundations below ground, digging, and underground pipes. Most property policies exclude these. The appraisal lists them as exclusions and subtracts them from the value to insure.
- Paved areas and landscaping. Most appraisals leave out parking lots, driveways, and plantings.
Items left out because each condo owner insures them:
- Floor, wall, and ceiling coverings, appliances, cabinets, and the other items listed in the owner section below.
- Furniture, clothing, electronics, and other personal belongings.
Decisions the appraisal does not make:
An appraisal sets a property value. It does not set the association’s deductible, liability limits, or other policies. Your insurance agent handles those decisions, using the appraisal as a starting point.
What does a Florida condo association have to insure?
A Florida condo association must insure all of the condominium property as it was originally built, plus approved changes to the common areas. This applies no matter what the association’s declaration says. (Florida Statutes, section 718.111(11))
The association’s property policy must cover:
- All parts of the condominium property as originally installed, or replacements of similar kind and quality, based on the original plans.
- Changes or additions to the common areas that were approved under the association’s documents.
The association must also insure or bond everyone who handles association money, such as officers who sign checks. That coverage must equal the most money the association holds at any one time.
Florida law allows the association to buy other coverage, but does not require it:
- Directors and officers liability insurance, which protects board members.
- Insurance for association employees.
- Flood insurance for the common areas, association property, and units.
One exception: if each unit is its own freestanding building, the declaration can require each owner to insure it instead.
Why the amount matters to every owner: Under Florida law, the association’s deductible and any damage above its coverage limits are a common expense. That means all owners share the cost, usually through a special assessment. An up-to-date insurance appraisal helps keep that gap small. To see what that gap can cost, read One Skipped Condo Insurance Appraisal, a $600,000 Loss.
What should condo owners insure on their own policy?
Condo owners need their own policy to cover what the association’s policy leaves out. Insurance agents often call this a condo unit owner policy, or an HO-6 policy. For more detail, see our guide to condo insurance in Florida.
Florida law makes each owner responsible for these items inside the unit, when they serve only that unit:
- Floor coverings, such as carpet, tile, and wood flooring
- Wall and ceiling coverings, such as paint and wallpaper
- Electrical fixtures, such as light fixtures
- Appliances
- Water heaters and water filters
- Built-in cabinets and countertops
- Window treatments, such as curtains, drapes, blinds, and their hardware
- Personal belongings inside the unit or in limited common elements (areas set aside for one unit’s use, such as an assigned storage space)
The association’s insurance appraisal does not include these items, so the owner’s policy has to cover them.
Owners also pay to rebuild these items after a loss. If the association does that repair work, it can charge the owner for it. (Florida Statutes, section 718.111(11))
What else should condo owners check?
Three more things owners should check with their agent:
- Upgrades. The association does not have to pay to repair upgrades that benefit only one unit and were not part of the builder’s standard finishes. This applies whether you, a past owner, or the developer added them. Make sure your policy covers them.
- Your share of an assessment. Florida requires every condo owner policy to include at least $2,000 of loss assessment coverage. This helps pay your share when the association assesses owners after a covered loss to the common property. (Florida Statutes, section 627.714) A large association deductible can mean a large assessment, so ask whether a higher limit makes sense.
- Damage that starts in your unit. If an owner’s carelessness or failure to follow association rules causes damage, Florida law can make the owner pay what insurance does not cover. That includes damage to neighbors’ property. Liability coverage on your own policy helps here.
How is insurance different in a homeowners association?
In a Florida homeowners association (HOA), the community’s governing documents decide who insures what. The state law for HOAs, Chapter 720, does not say what property insurance the association must carry. (Becker & Poliakoff, May 2026)
Here is how it usually works:
- Single-family home communities: Each owner insures their own home. The HOA insures the common property it owns, such as a clubhouse, pool, or gatehouse.
- Townhome communities: Many have documents that require the HOA to insure the buildings as a common expense. Others leave each home to its owner. The documents decide.
The one insurance item Chapter 720 does address is a fidelity bond or insurance for anyone who handles association money. Unlike condos, HOA members can vote to waive or reduce that requirement.
If your HOA insures any buildings, it needs a reliable replacement cost for them, just like a condo. Florida law does not require HOAs to get an insurance appraisal, but an appraisal gives the board a documented number to base its coverage on.
Who insures what: quick reference
| Item | Condo | HOA |
|---|---|---|
| Building structure, roof, exterior walls, windows | Association | Governing documents decide (usually the homeowner in single-family communities) |
| Original interior walls and ceilings, not the finishes | Association | Same as the building |
| Clubhouse, pool, and other common buildings | Association | HOA |
| Floor, wall, and ceiling coverings | Owner | Usually the homeowner |
| Appliances, water heaters, light fixtures | Owner | Usually the homeowner |
| Built-in cabinets and countertops | Owner | Usually the homeowner |
| Window treatments | Owner | Usually the homeowner |
| Upgrades beyond the builder’s standard finishes | Owner | Usually the homeowner |
| Furniture and personal belongings | Owner | Homeowner |
| Land, below-ground foundations, underground pipes | Not normally insured | Not normally insured |
| Bond or insurance for people who handle association money | Association (required) | HOA (required unless members vote to waive or reduce it) |
An insurance appraisal values only the items the association insures. For an HOA, always check the declaration first. It controls the split.
Frequently asked questions
How often does a Florida condo need an insurance appraisal?
Florida law requires the replacement cost of a condo’s property to be determined at least once every three years. This can be a new insurance appraisal or an update of a previous one.
Is an insurance appraisal the same as a market value appraisal?
No. A market value appraisal estimates what a property would sell for, including the land. An insurance appraisal estimates what it would cost to rebuild the buildings, and leaves out the land.
Does the condo association’s insurance cover my kitchen cabinets?
No. Under Florida law, built-in cabinets and countertops that serve only your unit are the owner’s responsibility to insure.
Does an insurance appraisal include the value of the land?
No. Land does not need to be rebuilt after a fire or storm, so appraisals leave it out of the replacement cost.
Does my HOA need an insurance appraisal?
Florida law does not require one for HOAs. If your HOA insures any buildings, an appraisal still helps the board set the right coverage amount.
Does the association’s policy cover flood damage?
Standard property policies usually do not cover flood. Florida law allows a condo association to buy flood insurance for the common areas, association property, and units, but does not require it. Ask your board or agent what your association carries.
Need an insurance appraisal?
Prestar Services is a St. Petersburg insurance appraisal firm that has completed more than 18,000 valuations since 2006. If your association’s appraisal is due, or you are not sure what your current one includes, contact Maris Gonzales at maris@prestarservices.com or 727-345-8400.
This article is general information, not legal or insurance advice. Talk with your association’s attorney and insurance agent about your own documents and policies.
