Milestone Inspections and Insurance: What Florida Association Boards Need to Know

In the aftermath of the Champlain Towers South collapse in Surfside, Florida enacted significant new legislation governing structural inspections for condominium and cooperative buildings. Known broadly as the milestone inspection requirements (enacted through SB 4-D and subsequent amendments), these rules create mandatory structural inspection timelines and reserve funding requirements that directly intersect with your association's insurance program.

If your association is subject to milestone inspection requirements, the results of those inspections will likely affect your insurance — how carriers evaluate your risk, what they're willing to cover, and what they charge for it.

What Are Milestone Inspections?

Milestone inspections are structural integrity assessments required for certain Florida condominium and cooperative buildings. The key provisions:

Which buildings are affected? Buildings that are three stories or more in height. Mixed-use buildings meeting the height threshold where the residential portion is operated as a condominium or cooperative.

When are inspections required?

Buildings within three miles of the coastline must have their initial inspection by the time the building reaches 25 years of age (based on the certificate of occupancy date)
All other affected buildings must have their initial inspection by 30 years of age
After the initial milestone inspection, subsequent inspections are required every 10 years

What do the inspections involve? The milestone inspection has two phases:

Phase 1 — A visual examination of the building's structure and primary structural members by a licensed engineer or architect. If no signs of substantial structural deterioration are found, the inspection is complete.
Phase 2 — Required only if Phase 1 reveals substantial structural deterioration. This is a more detailed examination that may include destructive and non-destructive testing to evaluate the extent of deterioration.

How Inspections Affect Insurance

The connection between structural inspections and insurance is both direct and practical.

Carrier Underwriting Questions

Insurance carriers writing coastal Florida condominium property have increasingly added milestone inspection questions to their underwriting applications. Expect questions like:

Has the building undergone its milestone inspection?
What were the results? Were any structural deficiencies identified?
If Phase 2 was required, what were the findings?
Have recommended repairs been completed? What's the timeline?

Carriers are looking for two things: evidence of structural integrity and proof that the board is taking maintenance obligations seriously. A clean Phase 1 inspection is a positive signal. A building that should have been inspected but hasn't been — or one with Phase 2 findings that remain unaddressed — may face coverage restrictions or declinations.

Impact on Coverage and Pricing

A building with identified structural deficiencies may experience:

Higher premiums — carriers perceive increased risk of structural failure or related property damage
Coverage restrictions — specific exclusions for damage related to identified structural issues, or reduced sublimits for certain loss types
Carrier declination — some carriers may decline to write or renew coverage for buildings with unresolved structural issues
Deductible increases — particularly for water damage, which is closely related to structural integrity in aging buildings

Conversely, a building that has completed its milestone inspection with clean results, maintains a robust reserve fund, and has a documented maintenance program is a more attractive risk for carriers.

The Reserve Study Connection

Alongside milestone inspections, Florida law now requires associations to conduct Structural Integrity Reserve Studies (SIRS) that include reserve components for structural elements. Associations can no longer waive or reduce funding for reserves related to structural components identified in the reserve study.

This is directly relevant to insurance because reserve funding adequacy is something carriers evaluate when underwriting association risks. A well-funded reserve indicates a board that's prepared for both maintenance and loss events. An underfunded reserve — particularly for structural components — signals potential deferred maintenance, which correlates with increased insurance risk.

What Boards Should Do

Before the Inspection

Know your timeline. Based on your building's certificate of occupancy date and distance from the coastline, determine when your milestone inspection is due. If you're unsure, your local building official can confirm.
Budget for it. Phase 1 inspections can cost $5,000-$25,000+ depending on building size and complexity. Phase 2 costs are significantly higher. These costs should be included in your operating budget or reserve plan.
Select a qualified professional. The inspection must be performed by a licensed engineer or architect with relevant structural experience. Ask for references from other association clients and verify their credentials.

After the Inspection

Share results with your insurance agent immediately. If the results are clean, your agent can use this as a positive underwriting factor at your next renewal. If issues were identified, your agent needs to know so they can navigate carrier questions proactively.
Document your response to any findings. If the inspection identified items requiring repair or monitoring, create and document a remediation plan with timelines. Carriers want to see that the board is addressing identified issues — not that the building is perfect, but that the board is responsive and responsible.
Keep records. Maintain complete copies of all inspection reports, engineering assessments, repair proposals, completed work documentation, and board resolutions related to structural maintenance. These documents support your insurance placement and demonstrate board diligence.

Ongoing

Integrate inspection findings into your reserve study. Any structural components identified as needing future attention should be reflected in your reserve plan with appropriate funding timelines.
Communicate with unit owners. Milestone inspection results are part of the official records of the association. Transparent communication about inspection results and the board's response builds trust and reduces the likelihood of owner complaints or litigation.

The Bigger Picture

Milestone inspections and the associated reserve requirements represent a fundamental shift in how Florida regulates condominium building maintenance. For insurance purposes, this shift is ultimately positive — buildings that are regularly inspected, properly maintained, and adequately reserved are better insurance risks.

The associations that will benefit most from this regulatory environment are the ones that treat inspections not as a compliance burden, but as a tool for proactive risk management. The same information that helps you maintain your building helps you obtain better insurance terms.

Common Elements will help Gulf Coast community associations navigate the intersection of structural compliance and insurance when we launch. Join our waitlist to be notified.