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BILL: CS/CS/SB’s 2086 & 2498

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Every hazard insurance policy issued or renewed on or after January 1, 2004, to an individual unit owner must provide that the coverage afforded by such policy is excess over the amount recoverable under any other policy covering the same property. Each insurance policy issued to an individual unit owner providing such coverage shall be without rights of subrogation against the condominium association that operates the condominium in which such unit owner’s unit is located. All real or personal property located within the boundaries of the unit owner’s unit which is excluded from the coverage to be provided by the association as set forth in paragraph (b) shall be insured by the individual unit owner.

Section 718.111(11)(d), F.S., requires that the association obtain and maintain adequate insurance or fidelity bonding of all persons who control or disburse funds of the association. It provides that the insurance policy or fidelity bond must cover the maximum funds that will be in the custody of the association or its management agent at any one time. It defines the term “persons who control or disburse funds of the association” to include, but is not limited to, those individuals authorized to sign checks and the president, secretary, and treasurer of the association. The association is required to bear the cost of bonding.

Condominium Common Expenses Section 718.115(1)(a), F.S., provides, in pertinent part that the common expenses of a condominium association include:

the expenses of the operation, maintenance, repair, replacement, or protection of the common elements and association property, costs of carrying out the powers and duties of the association, and any other expense, whether or not included in the foregoing, designated as common expense by this chapter, the declaration, the documents creating the association, or the bylaws. Common expenses also include reasonable transportation services, insurance for directors and officers, road maintenance and operation expenses, in-house communications, and security services, which are reasonably related to the general benefit of the unit owners even if such expenses do not attach to the common elements or property of the condominium.

Section 718.115(1)(a), F.S., also provides that these common expenses must either have been services or items provided on or after the date control of the association is transferred from the developer to the unit owners or must be services or items provided for in the condominium documents or bylaws.

Assessments for Condominiums Section 718.103(1), F.S., defines an “assessment” as the “share of the funds which are required for the payment of common expenses, which from time to time is assessed against the unit owner.”

Section 718.116(8), F.S., requires that a condominium association must provide a certificate signed by an officer or agent of the association which states all assessments and other monies that are owed to the association by the unit owner. This certificate, also known as an “estoppel

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