Comparing a beachfront condo to a home in a gated neighborhood around Destin? The right choice often comes down to the association that governs the property and how it affects your costs, insurance, and rental options. You want a home that fits your lifestyle and your numbers, without surprises after closing. In this guide, you’ll learn how HOAs and COAs work in Florida, what to verify in Destin, and the exact documents to request before you buy. Let’s dive in.
HOA vs COA in Florida: what they are
In Florida, a homeowners association (HOA) typically governs single‑family neighborhoods, planned communities, and some townhome developments. HOAs are primarily regulated by the Florida Homeowners’ Association Act, found in Chapter 720 of the Florida Statutes.
A condominium association (often called a COA) governs condo communities, where you own your unit and share ownership of common elements like structure, roofs, elevators, and parking garages. COAs are regulated under the Florida Condominium Act (Chapter 718).
Both entities operate through recorded governing documents, budgets, and board rules. Both can levy assessments and place liens for unpaid assessments under Florida law. What differs is who maintains and insures what, and how rules affect your intended use of the property.
Key differences that affect your costs
Maintenance and responsibilities
- COA: The association typically maintains the building structure, exterior, roofs, common areas, elevators, and major systems. You are usually responsible for interior finishes and items defined in the declaration. Verify how “limited common elements” are handled.
- HOA: The association usually maintains community amenities and common areas such as gates, landscaping, or private roads. You often maintain your own building exterior and roof, but it depends on the recorded covenants.
Always confirm the exact boundary between owner and association responsibilities. Review the declaration and any maintenance matrix before you make an offer.
Insurance structure and deductibles
- COA: The condo association generally carries a master policy that covers the building shell and common elements. You carry an HO‑6 policy for interior coverage, improvements, personal property, and liability. Ask for the master policy declarations and check hurricane and windstorm deductibles.
- HOA: The association insures shared amenities and common areas. You typically carry an HO‑3 (or similar) policy to insure your entire home, structures, and contents. Some associations allow allocation of a portion of the association’s deductible to owners after a storm. Read the bylaws and declarations carefully.
Florida’s coastal insurance market has been volatile. Deductibles and premiums can materially affect your monthly costs. For context on market conditions, visit the Florida Office of Insurance Regulation, and always review the association’s policy documents during due diligence.
Assessments, reserves, and finances
Condo dues are often higher than single‑family HOA dues because COAs insure and maintain buildings, roofs, and elevators. Regardless of type, you should request and review:
- Current operating budget and the most recent year‑end financials
- Reserve study and current reserve balances
- History of special assessments and current delinquency rates
- Any CPA review or audit, if available
Low reserves combined with big capital needs can trigger special assessments. In a coastal market like Destin, roofs, exterior systems, and storm repairs are significant line items.
Rules that shape how you can use the property
Rentals in Destin
Destin has strong demand for short‑term rentals. Many buyers plan to rent their property for part of the year. Association rules vary and can include minimum rental periods, caps, registration, and additional insurance requirements. Before you buy, verify the association’s rental policy, then check any local business tax, registration, and safety rules with the City of Destin.
For investors, the rental policy is often the single most important rule. Confirm details like minimum stay requirements, blackout dates, application steps, and any fees or permits.
Pets, parking, and property changes
COAs commonly regulate pets, parking, and balcony or common‑area use. HOAs often regulate exterior modifications and may require design review and permitting for changes like repainting, roofing, or adding structures. Ask for the current Rules and Regulations and any architectural guidelines.
Local Destin realities to check
Flood zones and FEMA FIRMs
Destin properties can sit in or near Special Flood Hazard Areas. Lenders may require flood insurance if the property is in a high‑risk zone. Pull the Flood Insurance Rate Map and any Elevation Certificate early in your process using the FEMA Flood Map Service Center. Flood risk will affect both your insurance costs and your comfort level.
Hurricanes, wind coverage, and deductibles
Coastal wind and hail exposure can drive higher premiums and larger deductibles. Associations may adjust coverage at renewal, which impacts dues and special assessments. Request the master policy declarations, current deductible amounts, past claims history, and renewal timeline. For statewide context on insurance market shifts, review guidance from the Florida Office of Insurance Regulation.
Permitting, code, and recorded documents
Some projects require both association approval and city or county permits. Check association Architectural Review or Design Review rules, and verify local requirements with the City of Destin. To review recorded covenants, amendments, plats, and easements, search the official records with the Okaloosa County Clerk of Court. These recorded documents define what the association can enforce.
Buying timeline and due diligence
Early in your search
- Ask for the declaration, bylaws, and Rules and Regulations before you write an offer.
- Review the most recent budget to understand dues, insurance costs, and reserve funding.
- If you plan to rent, confirm minimum rental terms and any caps or application steps.
After contract acceptance
- Request the required transfer documents. In Florida, condos provide a resale certificate and HOAs issue an estoppel letter that confirms assessments, fees, and any violations. Statutory procedures are outlined in Chapter 718 and Chapter 720.
- Coordinate with your lender and title company on association document needs and timelines.
Before closing
- Review meeting minutes from the past 12 to 24 months for clues on upcoming assessments or repairs.
- Obtain the master insurance declarations page and claims history. Confirm windstorm and hurricane deductibles and how they are allocated.
- Review the reserve study, recent financials, and owner delinquency rates.
- Ask for a litigation summary. Pending lawsuits can affect financing, insurance, and marketability.
Documents to request
- Declaration and all amendments (CC&Rs for HOAs, Declaration of Condominium for COAs)
- Bylaws, Articles of Incorporation, and Rules and Regulations
- Current budget, prior year budget, and the latest financial statements
- Reserve study and current reserve balances
- History of special assessments and schedule of current dues
- Master insurance declarations and claims history
- Board and member meeting minutes for the last 12 to 24 months
- Management contract and manager contact information
- Estoppel letter or resale certificate, including any transfer fees and fines
- Written policies for rentals, pets, parking, design review, and amenities
Red flags to watch
- Low or no reserves alongside near‑term roofing, exterior, or elevator needs
- Frequent or large special assessments with limited documentation
- High owner delinquency rates that strain cash flow
- Very high windstorm or hurricane deductibles or reduced coverage
- Rental rules that do not fit your intended use
- Ongoing litigation or repeated governance turnover
HOA or COA: which fits your goals?
If you prefer lock‑and‑leave convenience and want access to amenities, a condo may suit you. Expect higher dues that cover building insurance and systems. If you value more control over your structure and lower monthly dues, a single‑family HOA could be the right fit. The best choice in Destin depends on how you plan to use the property, your comfort with building‑wide risk, and your budget for insurance and assessments.
A careful review of the governing documents, finances, insurance, and rental rules will help you move forward with confidence. If you want help aligning lifestyle and investment goals in Destin’s coastal market, reach out to Atwater | Henderson to Receive Exclusive Listings and a tailored due diligence game plan.
FAQs
What is the difference between an HOA and a COA in Florida?
- HOAs typically govern single‑family or townhome communities and focus on common areas. COAs govern condos and maintain shared building systems and structure under the Florida Condominium Act.
Which has higher monthly dues in Destin, HOA or COA?
- Condos often have higher dues because the association insures and maintains buildings, roofs, elevators, and common systems. Single‑family HOAs can be lower, but it varies by community and amenities.
Can a Destin association limit or regulate short‑term rentals?
- Yes. Many associations set minimum rental periods, registration, occupancy, and insurance requirements. You should confirm association rules and check local requirements with the City of Destin.
How do hurricane deductibles impact condo owners?
- Associations may carry sizable windstorm or hurricane deductibles. After a storm, some costs can be passed through to owners via assessments. Review master policy deductibles and allocation rules before you buy.
What is an estoppel letter or resale certificate in Florida?
- During a sale, HOAs issue estoppel letters and COAs provide resale certificates. These documents summarize assessments, fees, violations, and transfer items as outlined in Chapter 720 and Chapter 718.
Where can I find recorded covenants and amendments for a Destin property?
- Search the official records through the Okaloosa County Clerk of Court. The recorded declaration and amendments control what the association can enforce.
