Insuring Improvements, Betterments, and Upgrades — Why Florida Condo Owners Are Often Underinsured

One of the most expensive and common insurance mistakes Florida condo owners make is underinsuring the interior of their unit. Flooring upgrades, renovated kitchens, custom bathrooms, built-in closets, lighting packages, and appliance upgrades all add value to a condo—but they also add insurance responsibility.

In Week 6 of the Florida Condo Insurance Education Series, we’re focusing on improvements and betterments—what they are, why they matter so much in Florida, and how to make sure your HO-6 policy actually reflects the true value of your condo’s interior.

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Why Interior Coverage Is a Bigger Deal in Florida Condos

Florida condos face a perfect storm of risk factors that make interior coverage especially critical:

• Water damage is frequent (AC leaks, plumbing failures, storm intrusion)
• Hurricanes and wind-driven rain routinely damage interiors
• High humidity accelerates mold growth
• Construction costs have skyrocketed
• Older buildings are more failure-prone
• Master policy deductibles are massive

When interior damage happens, the association’s role usually stops at repairing common elements. Everything inside your unit becomes your responsibility—and that responsibility is insured under your HO-6 policy.

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What Are “Improvements and Betterments”?

In insurance terms, improvements and betterments are any interior features of your condo that:

• Were added after original construction, or
• Improve upon the builder-grade materials originally installed

These items are considered your personal property attached to the unit, not part of the building.

Common examples include:

• Tile, wood, or luxury vinyl flooring
• Granite, quartz, or marble countertops
• Upgraded kitchen and bathroom cabinets
• Renovated bathrooms and showers
• Glass shower enclosures
• Built-in shelving or entertainment centers
• Custom closets
• Crown molding and upgraded trim
• Recessed or designer lighting
• Interior doors and hardware upgrades
• High-end appliances
• Smart-home wiring or panels

If these items are damaged or destroyed, the association does not replace them. Your HO-6 policy must.

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How the Master Policy Impacts Interior Coverage

To understand your responsibility, you must know what type of master policy your condo association carries.

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Bare Walls / Studs-Out Policy (Most Common in Florida)

Under a bare walls policy, the association insures:

• Structural framing
• Exterior walls
• Roof
• Common areas

You are responsible for everything inside the unit, including:

• Drywall
• Paint
• Flooring
• Cabinets
• Countertops
• Fixtures
• Appliances

This policy form places the maximum responsibility on the unit owner.

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Single Entity / Original Specifications Policy

Under a single entity policy, the association may cover:

• Original builder-grade finishes
• Original cabinets, flooring, and fixtures

However, anything upgraded beyond original specs is your responsibility. That includes upgrades made by previous owners.

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All-In Policy (Rare but Still Limited)

Some newer or luxury buildings carry “all-in” coverage. Even then:

• Custom upgrades are often excluded
• Deductibles may still apply
• Claims can take months
• You may still need HO-6 building coverage to avoid delays

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Why Most Florida Condo Owners Are Underinsured

When we review HO-6 policies for condo owners across Florida, the most common issue we see is interior building limits that are far too low.

This usually happens because:

• Owners rely on default coverage amounts
• Renovations were never reported
• Inflation hasn’t been accounted for
• Prior owners’ upgrades were overlooked
• The master policy was misunderstood

It’s not uncommon to see HO-6 interior limits of $25,000–$40,000 on condos where the true replacement cost exceeds $100,000.

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What Interior Building Coverage Actually Pays For

Your HO-6 interior (Coverage A) pays to repair or replace:

• Drywall and texture
• Paint and wall coverings
• Baseboards and trim
• Flooring (tile, wood, vinyl, carpet)
• Cabinets and countertops
• Bathroom vanities and showers
• Interior doors
• Built-ins
• Lighting fixtures
• Appliances (depending on bylaws)

If a water loss, fire, or storm damages these items, this is the coverage that responds.

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Realistic Replacement Costs in Florida Condos

To understand how quickly costs add up, consider typical Florida replacement pricing:

Flooring

• Tile: $8–$15 per square foot
• Engineered wood: $10–$18 per square foot
• Luxury vinyl: $6–$12 per square foot

A 1,200-square-foot condo can easily have $18,000–$30,000 in flooring alone.

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Kitchen

• Cabinets: $12,000–$25,000
• Countertops: $4,000–$10,000
• Appliances: $5,000–$10,000

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Bathrooms

• Shower rebuild: $5,000–$12,000
• Tile and fixtures: $6,000–$15,000

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Drywall, Paint, and Mold Remediation

• Partial unit: $3,000–$8,000
• Full unit: $15,000–$30,000+

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Closets and Built-Ins

• Custom systems: $5,000–$12,000+

When you combine all of this, it becomes clear why many Florida condos require $80,000–$150,000+ in interior building coverage.

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What Happens If You’re Underinsured

If your HO-6 limit is too low, several problems arise:

• You may have to rebuild with cheaper materials
• You may pay tens of thousands out of pocket
• Repairs may be delayed
• Mold growth may worsen damage
• Disputes may arise over what is “original” vs. “upgraded”
• Your unit may be uninhabitable longer than expected

Insurance only pays up to your policy limit—not what it costs to make things right.

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How to Properly Calculate Interior Coverage

A smart approach to setting interior building limits includes:

1. Listing every upgrade in the unit
2. Estimating replacement cost at today’s prices
3. Including labor, not just materials
4. Accounting for inflation and post-storm demand
5. Reviewing condo bylaws for responsibility assignments
6. Adding a buffer for unexpected costs

Most Florida condo owners fall into these ranges:

• Basic finishes: $60,000–$90,000
• Moderately upgraded units: $90,000–$150,000
• Luxury or remodeled units: $150,000–$250,000+

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Why Relying on the Master Policy Is Risky

Even when the association should cover something:

• Deductibles may be extremely high
• Claims can take months to resolve
• Associations may dispute responsibility
• Repairs may be delayed due to funding issues
• Mold can develop while liability is debated

Your HO-6 policy is often the fastest way to restore your unit, even if subrogation occurs later.

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Best Practices to Protect Your Interior Investment

Florida condo owners should:

• Photograph and video the interior annually
• Save receipts and renovation invoices
• Update coverage after any remodel
• Review coverage annually
• Add ordinance or law coverage
• Increase mold limits
• Choose replacement-cost coverage
• Work with an agent who understands condo bylaws

At Florida Risk Partners, we routinely review master policies alongside HO-6 policies to ensure interior coverage is aligned correctly.