The State of Florida Condo Insurance in 2026: What Board Members and Owners Need to Know

A Market in Transition

For the past several years, Florida condo associations have faced an insurance market that felt broken. Carriers fled the state, premiums doubled or tripled, and some buildings couldn't find coverage at any price. In 2026, the picture is finally starting to shift — but it's complicated.

The good news: property insurance rates are stabilizing, new carriers are entering Florida, and legislative reforms are working. The challenging news: flood insurance keeps getting more expensive, liability and D&O rates are still climbing, and new building safety laws are creating costs that boards can't avoid.

Here's what every Florida condo board member and unit owner needs to understand about the insurance market heading into 2026.

Property Insurance: The First Real Relief in Years

For the first time since the post-hurricane crisis began, Florida's property insurance market is showing genuine signs of stabilization. Governor DeSantis announced in January 2026 that 83 rate-decrease filings are taking effect, 17 new homeowners' insurance companies have entered the state, and Citizens Property Insurance — the state's insurer of last resort — has seen its policy count drop 50% to the lowest level in 14 years.

What this means for condo associations:

Several carriers are actively writing Florida condo association business again, including Slide Insurance, American Integrity, Crestwell, and CORE. This increased competition is helping drive rates down — particularly for well-maintained buildings with clean loss histories.

The catch: Even if your rate stays flat, your premium may still increase. Florida Statute §718.111(11)(j) requires every condo association to obtain an independent property insurance appraisal at least once every three years. When that appraisal comes in higher — and in today's construction cost environment, it almost always does — your insured value goes up, and so does your total premium.

The formula: Premium = Rate x Insured Value. A 0% rate change on a 10% higher building value still means a 10% premium increase.

Flood Insurance: The Elephant in the Budget

If property insurance is the good news story of 2026, flood insurance is the opposite. FEMA's Risk Rating 2.0 methodology continues to push premiums higher for most coastal Florida condo associations, with annual increases of 15-18% that will continue for several more years until each policy reaches its "full-risk" premium.

For many Florida condo buildings, especially those in coastal areas, flood insurance has become the single largest line item in the insurance budget — sometimes exceeding the property insurance premium.

What's driving the increases:

Risk Rating 2.0 replaced the old zone-based pricing system with individual property risk assessments that factor in distance to water, building elevation, flood frequency, and replacement cost. For most Florida coastal condos, this means significantly higher premiums than the old system produced.

What boards can do:

• Elevation certificates can help demonstrate lower risk and potentially reduce premiums
• Private flood insurance is an alternative for some buildings, though availability varies
• Flood mitigation improvements (backflow valves, elevated utilities) may qualify for credits
• Budget conservatively — plan for 15-18% annual increases until your policy reaches full-risk pricing

Liability, D&O, and Umbrella: Still Climbing

While property rates are stabilizing, liability-related coverages continue to trend upward at 10-15% annually. The drivers are structural and unlikely to reverse soon:

Inflation in legal costs. Everything from attorney fees to expert witness costs to construction repair estimates has increased significantly. When a liability claim hits, it costs more to defend and more to settle than it did even two years ago.

Milestone inspection liability. Florida's SB 4-D legislation, passed after the Champlain Towers South collapse, requires milestone structural inspections for buildings three stories or taller that are 25 years old (or 30 years if more than three miles from the coast). These inspections can reveal conditions that create immediate liability exposure for boards. Carriers are pricing this risk into D&O and liability premiums.

Nuclear verdicts. Florida's litigation environment continues to produce outsized jury verdicts. While recent tort reform legislation (SB 2-A) has helped by eliminating one-way attorney fee provisions and reducing the statute of limitations for negligence claims, the effects are still working through the system.

Reserve study requirements. Associations can no longer waive reserves for structural components. Boards that underfund reserves now face both regulatory consequences and increased personal liability — which carriers factor into D&O pricing.

The SB 4-D Effect: How New Laws Are Reshaping Condo Insurance

The post-Surfside legislative reforms have fundamentally changed the insurance landscape for Florida condo associations. Here's what boards need to understand:

Milestone Inspections

Buildings three stories or taller must complete a milestone structural inspection by December 31, 2025 (if 30+ years old) or within the applicable timeframe based on building age. Phase 1 is a visual inspection; if issues are found, Phase 2 involves more detailed testing.

Insurance impact: Carriers are now asking about milestone inspection status on applications. Buildings that haven't completed required inspections may face coverage restrictions or non-renewal. Buildings where inspections reveal structural concerns face even more challenging renewals.

Structural Integrity Reserve Studies (SIRS)

Every condo association must complete a SIRS by December 31, 2025, and associations can no longer vote to waive or reduce funding for structural reserves. The study must cover:

• Roof
• Load-bearing walls and primary structural members
• Floor systems
• Foundation
• Fireproofing and fire protection systems
• Plumbing
• Electrical systems
• Waterproofing and exterior painting
• Windows and exterior doors

Insurance impact: Carriers view funded reserves as a sign of responsible governance. Associations with fully funded reserves are more attractive risks and may receive better pricing. Conversely, associations with significant reserve deficits may face higher premiums or coverage restrictions.

What This Means for Assessments

The combination of rising insurance costs and mandatory reserve funding is creating significant assessment pressure for many Florida condo associations. Some buildings are seeing special assessments of $50,000 to $100,000+ per unit to fund deferred maintenance and bring reserves into compliance.

2026 Insurance Budget Planning Guide

Based on current market conditions, here's a practical budgeting framework for Florida condo associations:

Overall recommendation: Budget for a 10-15% total insurance cost increase for 2026. If your building is coastal, older, or has deferred maintenance, plan for the higher end of that range.

Coverages You Should Not Cut

When budgets are tight, boards sometimes consider reducing coverage to save money. Here are the coverages that should never be on the chopping block:

Umbrella / Excess Liability. This is the most cost-effective coverage in your portfolio. For a relatively small premium, you get an additional $1-5 million in protection above your underlying liability limits. In an era of nuclear verdicts, this coverage is essential.

Ordinance & Law. If your building is damaged and repairs must meet current building codes (not the codes in effect when the building was originally constructed), the cost difference can be enormous. This coverage pays for that gap. It's especially critical for older buildings.

Equipment Breakdown. Elevators, HVAC systems, pool equipment, and electrical panels can fail catastrophically. Standard property policies often exclude mechanical and electrical breakdown. This endorsement fills that gap.

D&O with Proper Endorsements. Board members who serve without adequate D&O coverage are taking on significant personal financial risk. Make sure your policy includes employment practices liability, regulatory defense, and non-monetary claim coverage.

What Smart Boards Are Doing Differently

The associations getting the best insurance outcomes in 2026 share several common practices:

Starting the renewal process early. The best results come from beginning the marketing process 90-120 days before renewal. This gives your broker time to approach multiple carriers and negotiate terms.

Maintaining detailed building records. Carriers want to see maintenance logs, inspection reports, capital improvement histories, and reserve study results. Associations that can demonstrate proactive maintenance get better pricing.

Working with an independent agent. Captive agents represent one carrier. Independent agents like Atesa Risk Advisors shop your coverage across dozens of carriers to find the best combination of coverage and price. In a market this competitive, that access matters.

Investing in loss prevention. Water damage is the number one cause of condo insurance claims. Associations installing leak detection systems, maintaining plumbing infrastructure, and addressing water intrusion proactively are seeing tangible premium benefits.

Completing SB 4-D requirements on time. Associations that have completed milestone inspections and SIRS on schedule are in a much stronger position at renewal than those that are behind.

The Bottom Line

Florida's condo insurance market in 2026 is the most hopeful it's been in years — but "hopeful" doesn't mean "easy." Property rates are stabilizing, but flood and liability costs continue to climb. New legislation is making buildings safer but also creating new costs and compliance obligations.

The boards that will navigate this successfully are the ones that budget conservatively, maintain their buildings proactively, complete their regulatory requirements on time, and work with an experienced independent insurance advisor who knows the Florida condo market.

Need help with your condo association's insurance program? Call us at (904) 900-5063 or request a free association insurance review. We'll review your current coverage, identify gaps, and help you budget for 2026 and beyond.