Florida condo master Windstorm insurance required?

We live in a small 10 unit condo across from the ocean in South Florida. It’s two-story so we haven’t really been affected by all the recent legislation for larger condos. We have already done a $450,000 concrete restoration and impact windows installation.
Recently due to the cost of the deductible, 21,000 per unit, our board of directors has decided to not renew our master Windstorm policy.

I asked one board member what would be the plan if our building were condemned or destroyed from hurricane damage?

His reply was, although the board hasn’t discussed it he would imagine we would immediately have an assessment for over $200,000.

Even he agreed that this is an untenable situation, but he feels there’s nothing that can be done because nowhere it says that not having a master Windstorm policy is illegal.

It’s against Florida statute 715.111 but I don’t know how it’s enforced and I’m just looking for some opinions on how we should handle this.

Many years ago we each spent $45,000 on the building and now new people don’t want to pay to ensure it even though I feel like the law says we have to.

I would have to think that most people would know enough to have a master Windstorm policy when you live across the street from the ocean, but some people who haven’t been through storms feel differently.

I would also like to know how this affects my personal Windstorm policy that covers the interior walls. I’m actually too afraid to call my insurance company and tell them that.

I apologize for the error. I believe it’s 718.111d) An association controlled by unit owners operating as a residential condominium shall use its best efforts to obtain and maintain adequate property insurance to protect the association, the association property, the common elements, and the condominium property that must be insured by the association pursuant to this subsection.

I am looking at FS 718.111 (11) . For me, the keyword is "adequate." I tend to agree that the COA cannot lawfully just stop insuring for windstorms.

I would think individual units' lenders and each owner's personal insurer would not be happy about this lack of master insurance. This situation portends a legal mess and overall from my reading, staggering losses (in time and money) for each owner.

How does one get the HOA to comply with the law? I am assuming it is possible to comply with the law. It might not be, for various reasons.

Taking the COA to court is costly. Plus there is a "self-insurance" section in FS 718.111 (11). Whether self-insurance, compliant with Florida statutes, exists would have to be explored in depth. This is an advanced topic I am not prepared to discuss.

Instead of going to court, the most competent HOA attorneys advise running for the board and winning a majority of seats on it with people who feel as you do.

For me the next step would be to identify the cost to the COA of windstorm insurance (with that $21,000 deductible per unit). Is the Board just doing the amateur thing, trying to keep costs low with utter disregard for the law, the risk here, personal liability and more? Or is the cost of windstorm insurance so frighteningly high that... ? It might be. If you get on the board with others who feel as you do, you may want to be prepared to inflict massive assessment increases.

Either way you want to get all the facts of why the board decided to take this risk (on a few levels). Then my advice is to decide whether you want to be on the board or not.

One other thing: Not a few Floridians decide Florida is just not affordable period, because of the insurance problems. Are you determined to stay there? If so, then I trust you are more than aware this comes at a high price.

MichaelD9, thank you for your latest cogent reply.

I agree $1800 per year (per unit?) for the master coverage is not bad.

I am going to be a little hyperbolic here: I wonder if the paperwork the COA submits to individual units' lenders, when a buyer is applying for a loan, is honest. Just off the top of my head, I do not know how the COA can get away with this.

LoriM15 is an experienced Floridian COA/HOA direcor here that I find informed and thoughtful, even if we do not always agree. Maybe she will weigh in.

I am glad you know what it is like to serve on a board and be president. It is probably thee most intense and thankless volunteer gigs to be had.

Unless you want to be the guy that say tips off lenders (and home insurers there?), and assuming you want to continue owning this unit, your options look poor indeed.

I have owned two condominium units in my life, in different states. I hope to never, ever again.

I agree with your thinking.

You are not going to court over this. But if push came to shove and this did go to court, my observation is: There is no such thing as a slam dunk. The court might not see it the way you and I do.