BILL: CS/CS/SB’s 2086 & 2498
Section 718.111(11)(c), F.S., maintains the current requirement that policies may include deductibles as determined by the board. The bill requires that insurance deductibles must be consistent with industry standards and the prevailing practice for communities of similar size and age, and having similar construction and facilities in the locale where the condominium property is situated. It permits the association board to determine the deductible on the basis of available funds, including reserve amounts, or predetermined assessment authority at the time the insurance is obtained, when determining adequate insurance.
Section 718.111(11)(c)3., F.S., provides the procedures for board meetings for establishing the amount of deductibles based upon the level of available funds and predetermined assessment authority at a meeting of the board. The bill requires that the meeting must be open to all members. The bill requires that the meeting notice must:
State the proposed deductible and the available funds;
State the assessment authority relied upon by the board; and
Estimate any potential assessment amount against each unit, if any.
The bill permits the meeting to be held in conjunction with a meeting to consider the proposed budget or budget amendment.
Section 718.111(11)(d), F.S., maintains the current requirement for unit-owner controlled associations to exercise their best efforts to obtain and maintain insurance required by this subsection. Section 718.111(11)(e), F.S., maintains the current provision that permits associations for land condominiums to not obtain insurance if the unit owners are required to obtain adequate insurance. Section 718.111(11)(e), F.S., also maintains the current provision that permits the association to obtain and maintain liability insurance for directors and officers, insurance for the benefit of association employees, and flood insurance for common elements, association property, and units. Section 718.111(11)(f), F.S., specifies the following primary coverage that every hazard insurance policy issued on or after January 1, 2009, must provide:
23 All original or replaced portions of the condominium property; and All alterations or additions made to the condominium property or association property pursuant to s. 718.113(2), F.S.
The bill deletes the requirement that primary coverage must be for all portions of the condominium property located outside the units. The bill deletes the current requirement in s. 718.111(11)(b)2., F.S., for primary coverage for condominium property inside the units. The bill also deletes the current requirement in s. 718.111(11)(b)3., F.S., for primary coverage for all portions of the condominium property for which the declaration of condominium requires coverage by the association.
Section 718.111(11)(f)3., F.S., specifies the property that must be excluded from the association’s insurance coverage. The bill maintains most of the exclusions in current law and also requires that all personal property within the unit or limited common elements must be excluded from the coverage. The bill deletes the exclusion in current law for air conditioner or
23 Section 718.113(2), F.S., provides for the alteration or substantial additions to the common elements or to real property which is association property.