A family office’s preclosing insurance review should connect building deductibles, interior replacement costs, collection schedules, and liability protection across every residence. The objective is not simply more coverage, but a clear understanding of retained exposure before capital is committed.
For a family office assembling South Florida residences, insurance diligence should be as property-specific as the acquisition itself. The essential question is not simply whether each home is insured, but whether the association’s protection, the owner’s policy, the collection schedule, and the family’s liability program fit together without leaving exposure misunderstood.
A prospective purchase at Una Residences Brickell should prompt the same disciplined questions as any other condominium acquisition. Do not assume that one building’s arrangements resemble another’s. Build a separate coverage record for every residence, then review those records together.
This framework centers on condominiums. Detached residences require a separate property-policy review, not an automatic application of the master-policy and HO-6 structure.
Review the actual contract to establish the condominium association’s hurricane deductible. For a percentage deductible, request the applicable percentage, the value to which it applies, and the resulting dollar amount.
As a hypothetical example, if a 5% deductible applies to $200 million of insured building value, the association’s deductible is $10 million. It is not 5% of the residence’s purchase price. This distinction belongs in the acquisition memorandum, not in a conversation after a storm.
Next, distinguish wind, named-storm, and hurricane provisions. Their triggers differ; do not assume one deductible governs every wind event. Ask whether the selected hurricane deductible applies annually or separately to each hurricane, and have the broker explain the wording actually purchased.
Finally, establish how the association would fund its retained loss. Reserves and available funding influence whether owners face special assessments. Dividing a building deductible equally among units can provide an initial scenario, but it does not establish a particular residence’s obligation. Verify the applicable allocation before entering an owner-level estimate into the family’s liquidity plan.
A master-policy review should extend beyond the roof. Covered storm damage can involve exterior walls, elevators, common areas, structural elements, and shared mechanical systems. Windows and doors deserve explicit attention: responsibility must be established, not inferred from their location.
For a Surfside acquisition such as The Surf Club Four Seasons Surfside, request a written responsibility map based on the applicable insurance arrangements and governing documents. The project name alone tells a buyer nothing about the precise coverage boundary.
Ask the association and insurance advisers to distinguish building responsibilities from owner responsibilities and identify unresolved items before closing. Flooring, cabinetry, appliances, fixtures, and renovations should each have an agreed place in that review. The purpose is to avoid both an unexamined gap and the assumption that the master policy protects every element inside the residence.
HO-6 insurance complements the association’s master policy. It addresses owner-responsible interiors, personal property, liability, loss of use, and eligible assessments, subject to its terms. It does not replace insurance for the shared building.
Interior limits should reflect replacement costs for the actual owner-responsible build-out, not the acquisition price. A customized residence warrants more than a generic allowance. Ask the adviser to explain what the valuation includes and how it accounts for recent renovations.
For a Miami Beach purchase at Setai Residences Miami Beach, the same discipline applies: assess the specific residence rather than presume a standard interior value.
The unit policy can also carry its own hurricane deductible, distinct from its all-other-perils deductible. Record both in dollars where possible. Owner-level deductibles and an association assessment can place separate demands on liquidity following the same event.
Loss-assessment coverage is not blanket reimbursement for every amount an association asks owners to pay. A displayed limit is only the starting point; the assessment must qualify under the policy.
Ask the broker to explain how the proposed coverage would respond to a master-policy deductible assessment, what restrictions apply, and which potential building-level shortfalls would remain with the owner. Request answers tied to the actual policy wording, not a general product description.
For acquisition planning, keep three figures separate: the association’s deductible, the residence’s potential allocated assessment, and the insurance recovery that may be available. These figures are not interchangeable. Where allocation or coverage remains unresolved, retain that uncertainty in the cash-exposure estimate rather than treating a policy limit as expected proceeds.
Jewelry, watches, fine art, and collections may face personal-property sublimits. A substantial contents limit does not, by itself, establish protection for individual valuables. Scheduled valuable-articles coverage or a personal-articles floater merits a separate review.
The family office should reconcile the inventory at each residence with the insurance schedule. Check whether listed items, descriptions, and insured values match the collection, then verify any applicable off-premises protection. Do not assume that coverage at one address answers every question about an item kept elsewhere.
When evaluating Four Seasons Hotel & Private Residences Fort Lauderdale alongside other residences, use the acquisition as a checkpoint for that reconciliation. Ask specifically how the contract treats items moving between homes. The objective is a documented answer, not an assumption of automatic portability.
Umbrella coordination begins with the required underlying insurance. Compare the primary liability limit for each residence, along with relevant auto and watercraft limits, against the umbrella’s attachment requirements. Resolve any mismatch before considering the liability program complete.
Limit selection should reflect the family’s overall exposure. Multiple residences, vehicles, staff, guests, and tenants can shape that discussion; the value of a single condominium is not a sufficient sizing criterion.
Ask advisers to review the residences together and explain potential gaps. Do not treat the umbrella’s headline limit as proof that every underlying arrangement is coordinated. A portfolio-level comparison is more useful than reviewing each policy in isolation.
Before closing, assemble a concise decision record for each residence: master-policy deductibles and triggers, assessment allocation, association funding, interior replacement-cost limits, owner deductibles, assessment-coverage restrictions, valuable-articles schedules, and umbrella requirements.
Then ask the insurance adviser and legal counsel to resolve their respective open questions. Keep confirmed terms separate from estimates and proposed coverage. The family office’s final approval should reflect both the protection being purchased and the cash exposure it is prepared to retain.
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Begin a quiet conversationEach building’s policy and governing documents determine the boundary between association and owner responsibilities. A portfolio-wide review should follow, rather than replace, that property-specific diligence.
Review the actual contract and confirm the applicable deductible. For a percentage deductible, establish the calculation basis and resulting dollar amount.
In this hypothetical example, if the deductible applies to that insured building value, it equals $10 million at the association level. It is not calculated from the individual residence’s purchase price.
An equal-unit split is only an initial scenario. Verify the applicable allocation and association funding before treating any estimate as the owner’s exposure.
Their triggers differ, and the actual contract determines which deductible applies. Ask whether the hurricane deductible operates annually or separately for each hurricane.
Use the replacement cost of owner-responsible finishes, fixtures, appliances, and renovations. The purchase price is not a substitute for that valuation.
An HO-6 hurricane deductible can create owner-level exposure in addition to an association assessment. Review both when estimating retained cash exposure.
Coverage applies only to qualifying assessments under the policy terms. A stated limit does not guarantee recovery for every building-level shortfall.
Jewelry, watches, fine art, and collections may face personal-property sublimits. Reconcile scheduled items across residences and verify any applicable off-premises protection.
Compare residence, auto, and relevant watercraft liability limits with the umbrella’s underlying-insurance requirements. Select the umbrella limit with the family’s overall exposure in view, not only a single home’s value.
