Explaining a Dues Increase to Owners When Insurance Is Driving It

By Homeland Public Adjusters
Licensed public adjusters serving Florida & New Jersey

Chart showing how to explain an association dues increase driven by insurance, reserves and repairs

Short answer: owners accept a hard number better when they can see where it comes from. Show each budget line that changed and why, show what the insurance line actually buys, and show what the board did to control it. In Florida condos, the proposed budget must be delivered to owners at least 14 days before the budget meeting, and insurance premiums are excluded from the 115% test that triggers a substitute budget.

The Florida rules that shape the conversation

• Condos: the board must deliver notice of the budget meeting and a copy of the proposed budget at least 14 days before the meeting, and adopt the budget at least 14 days before the fiscal year starts (§718.112(2)(e) and (f)).
• If the budget is more than 115% of the prior year’s assessments, the board must also propose a substitute budget without discretionary expenditures, which owners can adopt by a majority of all voting interests. Required reserves, non-recurring SIRS repairs and insurance premiums are excluded from that calculation.
• HOAs: board meetings need 48 hours’ posted notice, and an assessment cannot be levied unless the notice says assessments will be considered (§720.303(2)(c)).

A one-page explanation owners will read

• The number: this year’s assessment, next year’s, and the percentage change.
• Line by line: insurance, reserves (including required SIRS funding), utilities, contracts, repairs; what changed and why.
• What insurance buys: property limit (replacement cost from the latest appraisal), wind and flood structure, deductibles in dollars, liability and D&O.
• What the board did: quotes obtained, deductible options compared, mitigation credits pursued (see the renewal guide).
• What owners can do: check their HO-6 and their loss assessment limit against their share of the deductible.

Frequently asked questions

Sources: Fla. Stat. §718.112 (2026); Fla. Stat. §720.303.

This guide is general information for association boards and managers, current as of October 2026. It is not legal advice. Your governing documents, your policies and your association’s attorney control.

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