Can a Florida Condo Association Use Reserves to Pay the Hurricane Deductible?

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

Chart of when Florida condo and HOA reserves can and cannot be used for an insurance deductible

Short answer: only with owner approval, and for structural integrity reserves, not at all. Florida condo reserves can be used for other purposes, such as a deductible, only if approved in advance by a majority of all the association’s voting interests. Associations required to have a structural integrity reserve study cannot use those SIRS reserves for anything else. The emergency powers statute does not change that. For most boards, the deductible has to be planned as an assessment, a loan or a separate fund.

The rules

• Reserves “may be used only for authorized reserve expenditures unless their use for other purposes is approved in advance by a majority vote of all the total voting interests” (§718.112(2)(f)3).
• For budgets adopted on or after December 31, 2024, owners of an association that must have a SIRS “may not vote to use reserve funds” for SIRS components for any other purpose.
• If the local building official finds the entire building uninhabitable after a natural emergency, the board may use reserve funds to make the building habitable and may pause or reduce contributions (§718.112(2)(f)2.d).
• The emergency powers in §718.1265 allow special assessments without a vote and emergency borrowing, but not using reserves.
• HOAs: reserves may be used for other purposes if approved in advance by a majority vote at a meeting with a quorum (§720.303(6)(h)).

Planning for the deductible

• Calculate the hurricane deductible in dollars for each building, and each unit’s share.
• Tell owners every year, so they can match their HO-6 loss assessment coverage to it (see Loss Assessment Coverage).
• Decide in advance how the board will fund it: special assessment, line of credit, or an operating contingency.
• After a loss, maximize the claim before the assessment is calculated; see Special Assessments After an Association Claim.

Frequently asked questions

Sources: Fla. Stat. §718.112 (2026); Fla. Stat. §718.1265; 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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