BILL: CS/CS/SB’s 2086 & 2498
condominiums involved and recorded according to s. 718.110, F.S.25 insurance must be placed in the association budget.
Furthermore, the cost of
Section 718.111(11)(h), F.S., maintains the current requirement for insurance or fidelity bonding of all persons who control or disburse funds of the association. 26
Section 718.111(11)(i), F.S., maintains the current provision that permits the association to amend the declaration of the condominium without regard to any requirement for mortgagee approval of amendments affecting insurance requirements. 27
Section 718.111(11)(j)2., F.S., provides that any portion of condominium property, which is required to be insured for casualty loss by the association, that is damaged by casualty must be reconstructed, repaired, or replaced as necessary by the association as a common expense. Hazard insurance, deductibles, uninsured losses, and other damages in excess of hazard insurance coverage are also common expenses. However, the bill provides the following exceptions:
A unit owner is responsible for the cost of repair or replacement of condominium property which is not paid by insurance when damage is caused by intentional conduct, negligence, or failure to comply with the terms of the declaration or association rules by a unit owner, his or her family, tenants, guests, or invitees. The unit owner is also without subrogation rights.
The unit owner is also financially responsible for the cost of repair or replacement of personal property of another unit owner or the association when the damage is caused by intentional conduct, negligence, or failure to comply with the terms of the declaration or association rules.
If the unit owner is reimbursed by insurance proceeds that go to the association, then the association must reimburse the unit owner without a waiver of any subrogation rights.
The association is not obligated to pay for reconstruction or repayment of casualty losses when losses were known or should have been known to a unit owner and were not reported to the association until after the insurance claim had been settled or denied by the insurance company because it was untimely filed.
Section 718.111(11)(k), F.S., permits associations to opt out of the provisions for allocation of repair or reconstruction expenses in s. 718.111(j), F.S., if the majority of the total voting interests28 in the association approve. The association may instead allocate repairs or reconstruction costs in the manner provided in the declaration as originally recorded or as amended. The vote may be approved by voting interests of the association without regard to any mortgagee consent requirements.
25 Section 718.110, F.S., provides that if the declaration does not provide for the process of amending, then it can be amended if approved by more than four-fifths of the voting interests.
26 27 28 See s. 718.111(11)(d), F.S., (2007). See s. 718.111(11)(b), F.S., (2007). Section 718.103(30), F.S., defines voting interests to mean “the voting rights distributed to the association members pursuant to s. 718.104(4)(j), F.S. In a multicondominium association, the voting interests of the association are the voting rights distributed to the unit owners in all condominiums operated by the association. On matters related to a specific condominium in a multicondominium association, the voting interests of the condominium are the voting rights distributed to the unit owners in that condominium.”