What Insurance Items Should I Check Before Buying a South Florida Luxury Condo?

Insurance diligence at the luxury tier is not just about the unit — it is about the building's ability to absorb a hurricane deductible without triggering a special assessment.

Premium history. Request the last three years of property insurance declarations pages and premium invoices. A building whose premium has increased 80% and is now stabilizing is in a different position than one that managed the period well with adequate reserves.

Deductible structure. Florida hurricane deductibles are typically 2–5% of total insured value. For a building insured at $200 million, a 3% deductible is $6 million — enough to trigger a special assessment if reserves are thin.

Reserve funding. SB 4D (2022) mandates fully funded structural reserves for buildings 3+ stories. Confirm the building is compliant and that operating reserves can absorb a deductible-sized event.

Assessment history. Ask whether the building has had any special assessments related to insurance costs or weather damage in the past five years — and what the disclosed forward pipeline looks like.