Changes to Statuate 718 (Condominium Act)
There have been monumental changes via House Bill 601 that changed Statute 718. This article will discuss the primary issues affecting insurance and the solutions we have come up with.
Primary Issue - The most pressing new issue for property managers and Board of Directors of associations is the requirement that the association must verify insurance for property insurance and liability insurance for all unit owners. IOA has partnered with a company that has developed a new program with A-rated carriers to most effectively deal with this issue. The coverage is cost effective: $20 per month per unit for liability, $20,000 of property insurance, and it includes the new $2000 special assessment requirement. The coverage can be applied for and managed online by a unit owner or the association's manager or board, the policies will name the association as additional named insured, and it is the best product available in the marketplace intended to meet the new requirements without requiring the cost or process for each unit owner actually getting their own insurance in place from an independent agent. We are happy to introduce the program to any of you for a complete and thorough explanation of the program as this is a simple non-encompassing summary.
Additional Changes - Appraisals must be completed every 36 months; Air conditioners and related equipment are now included in the master association policy; improvements or alterations by a unit owner that do not benefit all unit owners shall be insured by that unit owner; all deductibles/uninsured losses, etc are common expense of the association. This is not an all encompassing list, rather, a highlight of the legislative changes affecting insurance.
If you have any questions, or if we can be of any assistance with your Condo Association Insurance or related insurance products, please contact us.
Back to Articles
|
