Does this apply to my association?
Choose the correct entity statute first. Chapter 720 HOAs and Chapter 718 condominiums share the peak-custody formula but differ materially on waiver and enforcement.
What coverage does my association need?
HOA requirements
Chapter 720 homeowners’ association
- Does this apply to my association?
- An association governed by Chapter 720.
- How much coverage do I need?
- Coverage limit = maximum funds that will be in custody of the association or its management agent at any one time.
- What should I prepare?
- The law does not say whether to use a forecast or past peak, which date to use, or what policy form and losses are required. Ask for the association’s peak-funds calculation and policy.
- Who and what must coverage include?
- All persons controlling or disbursing association funds, including but not limited to check signers and the president, secretary, and treasurer. Named perils and form are not specified.
- Are there exceptions or waivers?
- A majority of voting interests present at a properly called association meeting may waive the requirement annually. The section does not authorize a partial reduction.
- When do I need coverage?
- Maintain continuously unless waived for that year. The association pays the cost.
- What records do I need?
- No regulator filing is stated. Insurance policies are official association records generally retained at least seven years.
Condominium requirements
Chapter 718 condominium association
- Does this apply to my association?
- This rule applies to Chapter 718 condominium associations. Timeshare-condominium insurance is directed to § 721.165.
- How much coverage do I need?
- Insurance or fidelity bonding for the maximum funds in association or management-agent custody at any one time.
- What should I prepare?
- The law does not set a method for measuring peak custody or a required bond form. Review the association’s calculation and current policy.
- Who and what must coverage include?
- All persons controlling or disbursing funds, including but not limited to check signers and president, secretary, and treasurer. Named perils are not specified.
- Are there exceptions or waivers?
- No annual member waiver appears in § 718.111(11)(h).
- When do I need coverage?
- The association must maintain coverage and bear its cost. The Division may monitor compliance on complaint and impose established penalties.
- What records do I need?
- No routine filing is stated. Current policies are official records. Nonpermanent official records generally must be retained in-state at least seven years.
How do I prepare to buy?
Classify the association under Chapter 720 or Chapter 718. Do not transfer the HOA waiver to a condominium.
Project the highest combined operating, reserve, and other association funds held by the association or management agent at one time.
Confirm every person who controls or disburses funds is included.
Retain the current policy in official records. For an HOA waiver, document the properly called meeting and annual vote.
Common Questions
Can a Florida condominium waive fidelity coverage annually?
No. The annual member waiver is in the Chapter 720 HOA statute, not § 718.111(11)(h).
Who counts as a person controlling or disbursing funds?
The statutes expressly include check signers and the president, secretary, and treasurer, but the list is not exclusive.
How is maximum custody measured?
The statutes do not prescribe a method. Boards should make and retain a supportable peak-funds projection.
Calculate coverage and read the law
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