Question 1

What is Loss Assessment coverage?

Accepted Answer

Loss Assessment coverage is a section of your HO-6 condo policy that helps pay your share of a special assessment levied by the condo association -- typically after damage to common areas, liability claims, or shortfalls in the association's insurance. Most policies include a default limit of just $1,000 to $2,000, which is rarely enough.

Question 2

What are the new Florida condo reserve laws?

Accepted Answer

After the Surfside building collapse in 2021, Florida passed SB 4-D requiring condo associations to conduct Structural Integrity Reserve Studies (SIRS) and fully fund reserves for critical building components. Associations can no longer vote to waive or reduce reserves for items like roofing, structural systems, and waterproofing. This means special assessments are now far more common.

Question 3

Does my standard HO-6 cover a special assessment?

Accepted Answer

It depends on the cause. Most HO-6 policies cover assessments resulting from a covered peril (like fire or wind damage to common areas) up to your Loss Assessment limit. However, assessments for deferred maintenance, reserve fund shortfalls, or code upgrades are typically excluded. That's why knowing your exact coverage language matters.

Question 4

How much Loss Assessment coverage do I need?

Accepted Answer

Financial advisors and insurance professionals generally recommend at least $25,000 to $50,000 in Loss Assessment coverage for Florida condo owners. The cost to increase this limit is usually modest -- often just $25 to $75 per year -- but the protection can save you tens of thousands.

Question 5

What is a Structural Integrity Reserve Study (SIRS)?

Accepted Answer

A SIRS is a professional engineering assessment that estimates the remaining useful life and replacement cost of critical building components -- roof, structure, electrical, plumbing, waterproofing, and more. Florida now requires these for buildings 3 stories or taller, and they directly determine how much the association must hold in reserves.

Question 6

Can the condo board levy an assessment without a vote?

Accepted Answer

In most cases, the board can levy assessments up to a certain threshold without a full owner vote, depending on your association's governing documents. Larger assessments typically require a membership vote. Either way, owners are legally obligated to pay, which is why having adequate Loss Assessment coverage is essential.

Question 7

I'm buying a condo. Should I check this first?

Accepted Answer

Absolutely. Before closing, review both the association's reserve study and your prospective HO-6 policy's Loss Assessment limit. A building with underfunded reserves is a red flag for future special assessments. Our tool helps you understand your exposure before you commit.

Question 8

Is this really free?

Accepted Answer

Yes, 100% free with no credit card required. Upload your HO-6 policy and get your gap analysis at no cost. We believe every condo owner deserves to understand their exposure before a surprise bill arrives.

Question 9

What happens to my data?

Accepted Answer

Your documents are encrypted in transit and at rest. We never sell or share your data with third parties. You can delete your files at any time from your account settings.

Special assessment coming? Check your HO-6 before the bill arrives.

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Loss Assessment Coverage

What's Covered vs. Not

Reserve Law Exposure

Recommended Actions

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Loss Assessment Limit

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Special Assessment Exposure

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