When you live in a Florida condo, hurricane season isn’t just a weather event — it’s a financial risk. And while many residents assume their association’s master policy and their own HO-6 coverage will protect them in a storm, the reality is more complex. One of the biggest financial surprises condo owners face after a hurricane is the way wind, named storm, and hurricane deductibles apply — and how these deductibles impact both the association and each individual condo owner.

Florida is the most hurricane-prone state in the country. Nearly every major insurer has pulled back, tightened underwriting, or increased deductibles in the last five years. Condo associations carry massive hurricane deductibles, often in the millions of dollars. Those deductibles are then split among unit owners — resulting in assessments that can easily cost owners thousands.

In Week 5 of the Florida Condo Insurance Education Series, we break down everything a Florida condo owner needs to know about hurricane-related deductibles, how they differ, how they’re triggered, and how your HO-6 policy should be structured to protect you.

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Why Hurricane Coverage Works Differently for Florida Condos

A standard homeowners policy has one deductible for most losses and sometimes a separate hurricane deductible. But condo insurance — both the association’s master policy and your HO-6 — works very differently.

Florida law allows insurers to apply different deductibles for:

• Wind damage
• Named storms
• Hurricanes
• Tropical storms
• Water intrusion caused by wind-driven rain

The association’s master policy will have one set of deductibles.
Your HO-6 policy will have another.
They do not match automatically.

This is where confusion — and large out-of-pocket costs — begin.

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The Three Main Types of Storm Deductibles You’ll See in Florida

Not all storm deductibles are the same. Understanding the difference between them is essential for budgeting, risk management, and proper HO-6 coverage.

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1. Hurricane Deductible

Definition: Applies ONLY when a storm meets the official definition of a hurricane and the National Hurricane Center issues a hurricane warning for any part of Florida.

The hurricane deductible ends once:

• The storm is downgraded to a tropical storm, OR
• 72 hours have passed since the last hurricane warning

Hurricane deductibles are usually 2%, 3%, 5%, or even 10% of the insured value of the building.

Example:

A high-rise condo building insured for $80 million with a 5% hurricane deductible means a deductible of $4 million.

If hurricane damage occurs:

• The master policy pays after the $4 million deductible is satisfied.
• The $4 million is divided among all unit owners.
• Each condo owner receives a special assessment based on their share.

This is why Loss Assessment Coverage is essential (Week 3).

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2. Named Storm Deductible

Definition: Applies when the National Hurricane Center names a storm — even if it never reaches hurricane strength.

This includes:

• Tropical storms
• Tropical depressions
• Storms that form but stay offshore

Named storm deductibles are similar in structure to hurricane deductibles but may apply more broadly.

Example:

If Tropical Storm Emily produces wind damage, the named storm deductible may apply even though the storm never became a hurricane.

This deductible is commonly seen in private markets and surplus lines carriers.

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3. Windstorm or Wind/Hail Deductible

Definition: Applies to ANY wind event, including:

• Thunderstorms
• Straight-line winds
• Tornadoes
• Tropical storms
• Hurricanes (if no separate hurricane deductible exists)

This is the most common deductible on both master policies and HO-6 policies.

Wind deductibles may be:

• A flat amount (like $1,000 or $2,500), OR
• A percentage of building value (common for master policies)

Wind deductibles often apply more frequently than hurricane deductibles, resulting in more owner assessments.

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How These Deductibles Affect Condo Owners

To understand your financial exposure, you need to know how deductibles are structured differently in the:

• Master policy (association-level)
• HO-6 policy (unit owner-level)

Let’s break it down clearly.

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Part 1: The Association’s Master Policy Deductible

The master policy deductible applies to:

• Roof damage
• Exterior walls
• Windows and doors (depending on bylaws)
• Elevators
• Common areas
• Building structure
• Shared plumbing and mechanical systems

When the association files a claim after a storm, the claim payment is reduced by the deductible.

If the deductible is:

• $1 million
• $2 million
• $5 million

That amount must be paid out-of-pocket — and the association typically collects it from the unit owners through assessments.

This creates a direct risk to YOU.

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Part 2: Your HO-6 Deductible

Your HO-6 condo policy will have:

• An all-perils deductible (e.g., $500, $1,000, $2,500)
• A windstorm or hurricane deductible (usually a percentage)

The HO-6 deductible applies to:

• Interior damage
• Flooring
• Cabinets and countertops
• Appliances
• Damage from wind-driven rain
• Personal belongings
• Temporary housing (in some cases)

It is essential to know whether your HO-6 uses:

• A flat hurricane deductible, or
• A percentage hurricane deductible

If it’s percentage-based, it may be based on the Coverage A (building coverage) limit. For example:

Coverage A = $60,000
Hurricane deductible = 2%

You would pay the first $1,200 of the loss.

If Coverage A is higher — as it should be for many units — your deductible grows.

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Why Condo Owners Get Hit Twice After a Hurricane

Many condo owners don’t realize that they may face TWO deductibles:

1. Their share of the association’s hurricane deductible

This is a special assessment that all unit owners must pay.

2. Their own HO-6 deductible

This applies to damage inside the unit.

This means that a single hurricane can result in:

• An assessment for thousands
• An HO-6-level out-of-pocket expense for interior repairs

Understanding this in advance helps you properly structure your HO-6 policy.

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Understanding Wind-Driven Rain — A Special Florida Problem

Wind-driven rain is one of the most common hurricane-related condo losses. It occurs when rain is blown sideways through:

• Cracks in stucco
• Window seals
• Sliding glass door tracks
• Roof edges
• Exterior gaps

Important:

Wind-driven rain is NOT always considered “flood” or “rising water.” It may be covered differently depending on the carrier.

Some HO-6 policies exclude wind-driven rain unless:

• The building envelope is damaged, OR
• The policy includes a special endorsement

This is one of the most overlooked gaps in Florida condo coverage.

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Hurricane Losses That HO-6 Policies Commonly Cover

Your HO-6 policy may cover:

• Interior water damage
• Damage to drywall and paint
• Ruined flooring (tile, wood, vinyl)
• Damaged cabinetry
• Broken interior doors
• Electronics and personal property
• Furniture
• Additional living expenses if you can’t live in your unit
• Mold damage (with limits)

The key is whether the damage occurred due to an insured peril, which includes wind damage and hurricane-related water intrusion.

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Hurricane Losses That HO-6 Policies Commonly Do NOT Cover

You may have no coverage for:

• Flooding from storm surge (requires separate flood insurance)
• Exterior damage (association responsibility)
• Windows and doors (depending on governing documents)
• Assessment shortfalls (unless you have Loss Assessment Coverage)
• Damage caused by lack of maintenance
• Mold that forms due to delayed action
• Damage that occurs after the hurricane deductible period ends

Many owners assume the HO-6 covers more than it does — especially regarding building envelope damage.

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Why Loss Assessment Coverage and Hurricane Deductibles Are Closely Linked

In Week 3, we covered Loss Assessment Coverage extensively. Now, in Week 5, it becomes even clearer why it’s essential.

When your association files a hurricane claim:

• The master policy deductible may be millions
• The deductible is passed to owners
• Loss Assessment Coverage helps pay your share

Imagine a building with a $2 million deductible and 300 units. Owners could easily face assessments between:

• $6,500
• $10,000
• $15,000+

Unless you have sufficient Loss Assessment Coverage, that entire bill comes directly out of your pocket.

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How Much Hurricane Deductible Should a Florida Condo Owner Carry?

Here are best practices:

1. For interior coverage (HO-6 building coverage):

Your deductible should be affordable enough to pay unexpectedly.
Most owners choose:

• $500
• $1,000
• $2,500

Higher deductibles save money but leave you exposed.

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2. For hurricane/wind deductibles:

Choose the lowest percentage you can reasonably afford:

• 2% is preferred
• Avoid 5% unless necessary
• Never choose 10% unless financially unavoidable

Percentage deductibles quickly become large dollar amounts.

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3. For Loss Assessment Coverage:

We recommend:

• $25,000 minimum
• $50,000 for most buildings in coastal or hurricane-prone zones
• $100,000 in luxury high-rise or waterfront buildings

This is a small premium increase that protects against enormous assessments.

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Practical Steps to Prepare for Hurricane Season in a Condo

Beyond understanding deductibles, you should take practical steps to prepare personally.

1. Review your governing documents

Know whether you or the association are responsible for:

• Windows
• Sliding glass doors
• Balcony enclosures
• Shutters

This dramatically impacts claims.

2. Conduct a pre-season walk-through of your unit

Look for gaps around door frames and windows that could allow water intrusion.

3. Document your interiors

Take photos and videos showing:

• Flooring
• Cabinets
• Appliances
• Wall condition

This helps with future claims.

4. Store valuables and essential documents safely

Keep them in waterproof containers or offsite.

5. Review your HO-6 policy BEFORE hurricane season

Don’t wait until a storm is coming — once a named storm forms, binding restrictions may prevent you from adjusting your policy.

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Final Thoughts: Hurricane Deductibles Are Manageable — If You Understand Them

• How master policy deductibles work
• How HO-6 deductibles apply
• How Loss Assessment Coverage fills the gaps
• When wind-driven rain is covered
• How to prepare before the storm arrives

Hurricanes are a fact of life in Florida, but financial devastation doesn’t have to be. The key is understanding:

The more informed you are, the better protected you’ll be when the next storm hits.

Next week, in Week 6 of the series, we will focus on a topic closely related to hurricane losses: insuring improvements, betterments, and interior upgrades inside your unit. Most condo owners vastly underestimate the value of their interior finishes — and the master policy almost never covers them.