***CONDO OWNER ALERT***

Since 2004, Florida's Condominium Act has required unit owners to maintain hazard insurance on their units - separate and above the hazard insurance on the common areas paid for by the condo association. It became apparent after the 2004 hurricane season, though, that the law wasn't being enforced when individual condos ravaged by Hurricanes Charlie and Jeanne weren't repaired or rebuilt because the unit owners lacked insurance. HB 601 provides condo associations a way to enforce THESE insurance standards by requiring unit owners to provide proof of insurance every year. If a unit owner fails to provide a certificate of insurance, the association may purchase insurance on the owner's behalf and assess the unit owner for the cost of the insurance.

Unit Owner Insurance: This bill also provides that as to individual unit owner policies, effective January 1, 2009, such policies must: (1) contain a provision stating that the coverage is excess coverage; and (2) include special assessment coverage of not less than $2,000 per occurrence. Individual unit owner policies may not provide rights of subrogation against the association. All improvements or additions to the condominium property that benefit fewer than all of the unit owners shall be insured by the unit owners that benefit from such property, or may be insured by the association at the expense of the unit owners who have the use thereof. Condominium property consisting of free-standing buildings may be insured by the unit owners if the declaration so provides.