SB 1457

Abstract

Amends the Condominium Property Act. Provides that certain insurance policies must be in a total amount of not less than the full insurable replacement cost or guaranteed replacement cost (current law does not contain "or guaranteed replacement cost") of the insured property, less deductibles, but including coverage for the increased costs of construction due to building code requirements of a minimum amount of 5% of the total building (blanket) limit (current law does not contain "a minimum amount of 5% of the total building (blanket) limit"), at the time the insurance is purchased and at each renewal date. Provides that certain associations must include the managing agent and employees who control or disburse funds of the association as additional insureds. Provides that, with exceptions, only policies issued by carriers who meet certain ratings benchmarks are permitted. Prohibits certain types of policies. Provides that the maximum deductible amount that unit owners can be required to pay is $5,000. Provides that certain contractors and vendors must provide certificates of insurance, which among other requirements, carry a commercial liability limit of at least $1,000,000 and provide a workers' compensation policy, even if the insured is self-employed with no additional employees. Provides that an association with 6 (instead of 30) or more units shall obtain and maintain fidelity insurance covering persons who control or disburse funds of the association for the maximum amount of coverage available to protect funds in the custody or control of the association plus the association reserve fund.