How Have Recent Changes in Florida Insurance Regulations Affected HOA Policies?

Florida’s condo and HOA insurance landscape has been reshaped by the most sweeping regulatory overhaul in 30 years.

Triggered by the 2021 Surfside collapse and accelerated by a hurricane-driven carrier crisis, Florida enacted six major legislative packages between 2022 and 2025. 

As of mid-2026, the market is stabilizing for the first time in nearly a decade – but many associations are still grappling with the compliance and cost consequences. 

Understanding these HOA insurance reforms is essential for any Florida board or homeowner.

 

 

The Legislative Timeline: 2022–2026

SB 4-D (March 2022) — The Surfside Response

Triggered directly by the June 2021 Champlain Towers South collapse, which killed 98 people. 

Florida’s first mandated structural inspection and reserve regime required Milestone Structural Inspections for condo/co-op buildings 3+ stories at 30 years of age (25 years for coastal buildings within 3 miles of shore), and Structural Integrity Reserve Studies (SIRS) for all condos with 3+ habitable stories. 

Critically, it eliminated the ability for associations to waive or underfund structural reserve components – ending a decades-old practice that enabled deferred maintenance to accumulate.

SB 2-D and SB 2-A (2022) — Insurance Market Reform

SB 2-D (May 2022) created a $2 billion state-funded reinsurance program, introduced separate roof deductible options, and set tighter claim filing windows. 

SB 2-A (December 2022) was the major reform: it eliminated one-way attorney fees for property insurance claims, expanded Assignment of Benefits (AOB) restrictions, and enforced Citizens depopulation with a 20% rule requiring homeowners to accept private offers within 20% of Citizens premiums.

HB 837 (March 2023) — Broader Tort Reform

Extended litigation reform principles beyond insurance to all liability cases – reducing plaintiff attorney fees, restricting contingency risk multipliers, and limiting bad-faith claim standards across civil litigation.

SB 154 (June 2023) — Surfside Refinements

Clarified SIRS items and who is qualified to perform them, prohibited waiving reserve funding for SIRS-required structural components, and required detailed reserve funding disclosures in annual budget reports.

HB 1021 and HB 1029 (July 2024) — Governance and Mitigation

HB 1021 tightened condo governance and made boards that fail SIRS/milestone compliance ineligible for Citizens Property Insurance. HB 1029 extended the My Safe Florida Home mitigation grant program to condo associations, offering grants up to $175,000 per eligible association for hurricane-resistance upgrades tied to insurance underwriting credits.

HB 913 (July 2025) — Condominium Safety Act Update

The most recent major reform, with direct insurance compliance implications:

• Extended the SIRS deadline to December 31, 2026 for qualifying unit-owner-controlled associations
• Made associations not in compliance ineligible for Citizens Insurance policies
• Mandated independent insurance appraisals every 36 months to establish current replacement cost values
• Raised the reserve threshold from $10,000 to $25,000 (indexed to inflation)
• Required retention of structural reports for 15 years
• Required adequate property insurance “regardless of any conflicting provisions in the Declaration of Condominium”

How Structural Reform Changed What Carriers Require

The SIRS and milestone inspection requirements have reshaped what carriers demand before writing Florida condo association policies. 

As of 2025–2026, many carriers now require proof of completed milestone inspections, a current SIRS demonstrating adequate funding, up-to-date maintenance records, documentation of completed or scheduled structural repairs, and a funded remediation plan if a Phase Two inspection identified issues.

Failure to comply results in:

• Ineligibility for Citizens Property Insurance (the last-resort state carrier)
• Potential coverage denials from admitted carriers
• Fiduciary liability for board members
• In extreme cases, uninhabitable building declarations from local officials

 

What the Reforms Mean for Florida Boards and Homeowners

For boards

• SIRS compliance is now an insurance eligibility prerequisite – non-compliant associations face Citizens ineligibility and potential coverage loss from admitted carriers
• Independent property appraisals every 36 months are now mandatory under HB 913
• Reserve waivers for structural components are permanently prohibited as of January 1, 2026
• Citizens depopulation is accelerating – boards may be placed with private carriers through the state’s approved depopulation cycles
• With 20 new carriers competing, early renewal and competitive bidding can yield 8–20% in savings
• Flood insurance under FEMA Risk Rating 2.0 continues rising 15–18%/year for coastal associations – budget accordingly

For homeowners

• Understand your association’s SIRS and milestone inspection status – non-compliance can block insurance renewal and trigger mortgage lender issues
• Review loss assessment coverage on your HO-6 – with structural assessments reaching $15,000–$100,000 per unit in older buildings, the standard $1,000 base limit is catastrophically inadequate
• Check whether your building is on Fannie Mae’s restricted list – over 1,400 Florida condos have limited financing availability due to compliance or financial deficiencies
• Be aware that median condo sale prices are down 6.7% year-over-year in Florida as compliance costs deter buyers

The Bottom Line: Stabilization, But Not for Everyone

Florida’s property insurance sector recorded its first underwriting profit in over a decade. Citizens fell below 1 million policies. New carriers are entering, and litigation has plummeted. The reforms worked at the market level.

But older condo communities in coastal areas face a different reality – special assessments, financing restrictions, and structural remediation costs that will take years to resolve. The market is stabilizing for the system as a whole, even as it remains acutely painful for the associations carrying the heaviest compliance burden.

 

HOA Start helps Florida boards manage SIRS documentation, track milestone inspection and appraisal deadlines, organize the records carriers now require, and communicate assessments transparently to homeowners. 

Start your free trial and see how HOA Start helps boards stay compliant and insurable in Florida’s evolving regulatory environment.

Frequently Asked Questions

How have recent Florida insurance regulations affected HOA policies?

• Six major reforms between 2022 and 2025 reshaped condo and HOA insurance, addressing structural safety, litigation abuse, and carrier solvency
• SIRS and milestone inspection compliance is now a prerequisite for insurance eligibility, including Citizens
• Litigation reform (eliminating one-way attorney fees and AOB) stabilized the market, attracting 20 new carriers since 2022
• HB 913 (2025) mandated independent appraisals every 36 months and required adequate property insurance regardless of conflicting declaration provisions

What is SIRS and why does it matter for insurance?

• SIRS stands for Structural Integrity Reserve Study, required for Florida condos with 3+ habitable stories
• It identifies structural components and mandates reserve funding for them – waivers are now prohibited
• Carriers now require a current, adequately funded SIRS before writing or renewing condo association policies
• Non-compliance makes an association ineligible for Citizens Insurance and risks coverage denial from admitted carriers

Is Florida HOA insurance getting cheaper?

• At the market level, yes – Florida recorded its first underwriting profit in over a decade, and some commercial premiums have decreased
• American Coastal reported a 16.6% commercial premium decrease in Q1 2026, and Citizens filed an 8.7% rate decrease
• However, older coastal condo buildings still face steep structural-compliance costs and special assessments
• The market is stabilizing overall even as specific associations with heavy compliance burdens continue to struggle

What should Florida condo owners do about loss assessment coverage?

• Review and significantly increase the loss assessment coverage on your HO-6 policy
• Structural special assessments have reached $15,000–$100,000 per unit in some older buildings
• The standard $1,000 base loss assessment limit is catastrophically inadequate against these amounts
• Increasing coverage to $50,000–$100,000 typically adds only a modest amount to the annual premium

Can a Florida HOA lose its insurance for non-compliance?

• Yes – associations not in compliance with SIRS, milestone inspections, and HB 913 are ineligible for Citizens Property Insurance
• Admitted private carriers may also deny coverage to non-compliant associations
• Board members can face fiduciary liability for failing to maintain compliance and adequate insurance
• In extreme cases, local officials can declare a building uninhabitable

 

Disclaimer: This content is provided for informational purposes only and does not constitute legal or financial advice. HOA laws, insurance requirements, and premium data vary by state and change over time. Consult a licensed insurance professional or qualified attorney for guidance specific to your community and situation.