BILL: CS/CS/SB’s 2086 & 2498
heating units. The bill deletes the provision that excludes all of the specified properties that are located within the boundaries of a unit and serve only one unit. It also deletes the exclusion for all air conditioning compressors that service only an individual unit, whether or not located within the unit boundaries.
Section 718.111(11)(g), F.S., specifies the provisions that must be contained in every hazard insurance policy issued or renewed on or after January 1, 2009, to an individual unit owner. The bill requires that an individual unit owner must include special assessment coverage of not less than $2,000 per occurrence. An insurance policy issued to an individual unit owner providing coverage does not provide rights of subrogation against the condominium association.
Section 718.111(11)(g)1., F.S., requires that improvements or additions which do not benefit all of the unit owners must be insured by the unit owner or owners who use the improvement or addition. Alternatively, the bill permits the association to insure the improvements or additions at the expense of the unit owners who use them.
Section 718.111(11)(g)2., F.S., requires the unit owners to provide evidence of a currently effective hazard and liability insurance policy upon request by the association. The association cannot require evidence of insurance more than once per year. If the unit owner fails to provide the evidence of insurance within 30 days, the association may purchase an insurance policy on behalf of the unit owner. The unit owner is responsible for the cost of the policy and for any reconstruction costs incurred by the association. These costs may be collected as assessments under s. 718.116, F.S. 24
Section 718.111(11)(g)3., F.S., provides that the association shall undertake all reconstruction work after a casualty loss. The unit owner may only undertake reconstruction work if he or she has the written consent of the board of administration, and the board must approve the repair methods, qualifications of the contractor, or the contract for repair. The bill requires that the unit owner obtain all required governmental permits and approvals before beginning any reconstruction.
Section 718.111(11)(g)4., F.S., provides that unit owners are responsible for reconstruction costs of any part of property for which they must have casualty insurance. The association may charge the unit with an enforceable assessment under s. 718.116, F.S., for any work the association has undertaken. The bill requires that the association must be an additional named insured and loss payee on all casualty insurance policies of unit owners.
Section 718.111(11)(g)5., F.S., provides that multicondominium associations may elect to operate as one condominium by majority vote for insurance purposes including, but not limited to, hazard insurance and the apportionment of deductibles and damages that exceed coverage. The election to do this must be treated as an amendment to the declaration of all the
24 Section 718.116, F.S., authorizes condominium associations to place a lien on the condominium unit for failure to pay the assessment. It also provides for interest, if the declaration or bylaws so provide, to accrue at the rate of 18 percent per year, and for late fees not to exceed the greater of $25 or 5 percent.