08 LC
29 3248S
House
Bill 1121 (COMMITTEE SUBSTITUTE)
By:
Representatives Willard of the
49th,
Knox of the
24th,
Millar of the
79th,
Lindsey of the
54th,
Maxwell of the
17th,
and others
A
BILL TO BE ENTITLED
AN ACT
AN ACT
To
amend Article 3 of Chapter 3 of Title 44 of the Official Code of Georgia
Annotated, relating to condominiums, so as to change certain provisions relating
to insurance coverage for condominium associations; to specify insurance
coverage; to provide for related matters; to repeal conflicting laws; and for
other purposes.
BE
IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION
1.
Article
3 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating
to condominiums, is amended by revising Code Section 44-3-107, relating to
insurance coverage for condominium associations, as follows:
"44-3-107.
(a)
The association shall obtain:
(1)
A
casualty
property
insurance policy or policies affording fire and extended coverage insurance for
and in an amount consonant with the full
insurable
replacement
value
cost, less
deductibles, of all
buildings
and structures within the
condominium;
provided, however, that
the.
Regardless of the boundaries of the condominium units, the insurance required by
this paragraph shall include, without limitation, all portions of each building
which are common elements including limited common elements, all foundations,
roofs, roof structures, and exterior walls, including windows and doors and the
framing therefor, and all convertible space within the building. Such insurance
shall cover the following items with respect to each condominium unit regardless
of who is responsible for maintaining them under the condominium
instruments:
(A)
The HVAC system serving the condominium unit;
(B)
All Sheetrock and plaster board comprising the walls and ceilings of the
condominium unit; and
(C)
The following items within the condominium unit of the type and quality
initially installed, or replacements thereof of like kind and quality in
accordance with the original plans and specifications, or as they existed at the
time the condominium unit was initially conveyed if the original plans and
specifications are not available: floors and subfloors; wall, ceiling, and floor
coverings; plumbing and electrical lines and fixtures; built-in cabinetry and
fixtures; and appliances used for refrigeration, cooking, dishwashing, and
laundry.
Unless
otherwise provided in the declaration, with respect to unfinished shell units
conveyed by the declarant, the items in subparagraph (C) of this paragraph shall
be insured by the condominium unit owner and the coverage required by this
paragraph shall repair or reconstruct only those portions of the shell unit
constructed by the declarant. With respect to any condominium units which have
not been conveyed by the declarant at the time of an insured loss, the coverage
required by this paragraph shall repair or reconstruct such units as they exist
at the time of such loss. The association
may exclude from
such
coverage
(A)
required by
this paragraph improvements made by the
condominium
unit
owners,
and
(B)
structures covered by builder´s risk insurance, such coverage to be in an
amount consonant with the full replacement value thereof, but only during such
period of time as the builder´s risk insurance remains in full force and
effect and only on the condition that the association is named as an additional
named
insured;
(2)
A commercial
general liability insurance policy or
policies,
in amounts specified by the condominium instruments but not in amounts less than
$500,000.00 for injury, including death, to a single person; $1 million for
injury or injuries, including death, arising out of a single occurrence; and
$50,000.00 for property damage; or, in the alternative, a liability
policy affording coverage for bodily
injury and property damage
with a
combined single limit in an amount not
less than
$1,050,000.00
$1 million for
a single occurrence and $2 million
aggregate. The policy or policies shall
cover the association, the board of directors and the officers of the
association, all agents and employees of the association, and all unit owners
and other persons entitled to occupy any unit or other portion of the
condominium for occurrences commonly insured against arising out of or in
connection with the use, ownership, or maintenance of the common elements or
other portion of the condominium which the association has the responsibility to
maintain; and
(3)
Any
other
additional
types and amounts of insurance coverage as may be specified in the condominium
instruments
or
authorized by the board of
directors.
(b)
The association may obtain additional types and amounts of insurance as may be
authorized by the board of
directors."
SECTION
2.
All
laws and parts of laws in conflict with this Act are repealed.