| 1 |
A bill to be entitled |
| 2 |
An act relating to the Department of Business and |
| 3 |
Professional Regulation; amending s. 718.111, F.S.; |
| 4 |
providing for an condominium association director
to |
| 5 |
abstain from an association vote; providing for |
| 6 |
application; requiring that hazard insurance be
based upon |
| 7 |
the replacement cost of the property to be
insured as |
| 8 |
determined by an independent insurance appraisal
or update |
| 9 |
of a prior appraisal; requiring that the full
insurable |
| 10 |
value be determined at specified intervals;
providing a |
| 11 |
means by which an association may provide
adequate hazard |
| 12 |
insurance; authorizing an association to consider
certain |
| 13 |
information when determining coverage amounts;
providing |
| 14 |
for coverage by developer-controlled
associations; |
| 15 |
providing that policies may include deductibles
as |
| 16 |
determined by the association's board of
directors; |
| 17 |
providing requirements and guidelines for the |
| 18 |
establishment of such deductibles; requiring that
the |
| 19 |
amounts of deductibles be set at a meeting of the
board; |
| 20 |
providing requirements for such meeting;
requiring that an |
| 21 |
association controlled by unit owners operating
as a |
| 22 |
residential condominium use its best efforts to
obtain and |
| 23 |
maintain adequate insurance to protect the
association and |
| 24 |
property under its supervision or control;
providing that |
| 25 |
a declaration of condominium may provide that
condominium |
| 26 |
property consisting of freestanding buildings
comprised of |
| 27 |
no more than one building in or on such unit need
not be |
| 28 |
insured by the association if the declaration
requires the |
| 29 |
unit owner to obtain adequate insurance for the |
| 30 |
condominium property; authorizing an association
to obtain |
| 31 |
and maintain liability insurance for directors
and |
| 32 |
officers, insurance for the benefit of
association |
| 33 |
employees, and flood insurance for common
elements, |
| 34 |
association property, and units; requiring that
every |
| 35 |
hazard insurance policy issued or renewed on or
after a |
| 36 |
specified date for the purpose of protecting the |
| 37 |
condominium provide certain coverage; requiring
that such |
| 38 |
policies contain certain provisions; providing
that such |
| 39 |
policies issued to individual unit owners do not
provide |
| 40 |
rights of subrogation against the condominium
association; |
| 41 |
providing for the insurance of improvements or
additions |
| 42 |
benefiting fewer than all unit owners; requiring
that an |
| 43 |
association require each owner to provide
evidence of a |
| 44 |
current policy of hazard and liability insurance
upon |
| 45 |
request; limiting the frequency with which an
association |
| 46 |
may make such a request; authorizing an
association to |
| 47 |
purchase coverage on behalf of an owner under
certain |
| 48 |
circumstances; providing for the collection of
the costs |
| 49 |
of such a policy; providing responsibilities of
the unit |
| 50 |
owner and association with regard to
reconstruction work |
| 51 |
and associated costs after a casualty loss;
authorizing a |
| 52 |
multicondominium association to operate such
condominiums |
| 53 |
as a single condominium for certain purposes by
majority |
| 54 |
vote of the members of all applicable
condominiums; |
| 55 |
providing that such election constitutes an
amendment to |
| 56 |
the declaration of all applicable condominiums;
requiring |
| 57 |
that an association maintain insurance or
fidelity bonding |
| 58 |
for all persons who control or disburse
association funds; |
| 59 |
requiring that such insurance policy or fidelity
bond |
| 60 |
cover the maximum funds in the custody of the
association |
| 61 |
or its management agent at any one time; defining
the term |
| 62 |
"persons who control or disburse funds of
the |
| 63 |
association"; authorizing an association to
amend the |
| 64 |
declaration of condominium without regard to any |
| 65 |
requirement for approval by mortgagees of
amendments |
| 66 |
affecting insurance requirements for the purpose
of |
| 67 |
conforming the declaration of condominium to
certain |
| 68 |
coverage requirements; providing that any portion
of the |
| 69 |
condominium property required to be insured by
the |
| 70 |
association against casualty loss which is
damaged be |
| 71 |
reconstructed, repaired, or replaced as necessary
by the |
| 72 |
association as a common expense; providing that
all hazard |
| 73 |
insurance deductibles, uninsured losses, and
other damages |
| 74 |
in excess of hazard insurance coverage under the
hazard |
| 75 |
insurance policies maintained by the association
are a |
| 76 |
common expense of the condominium; providing
exceptions; |
| 77 |
allocating responsibility for certain costs of
repair or |
| 78 |
reconstruction; authorizing an association to opt
out of |
| 79 |
certain requirements related to such allocation
of |
| 80 |
responsibility by majority vote; providing a
procedure by |
| 81 |
which a multicondominium association that has not |
| 82 |
consolidated its financial operations may opt out
of such |
| 83 |
allocation of responsibility; requiring that a
decision to |
| 84 |
opt out be recorded; providing that such decision
takes |
| 85 |
effect on the date on which it is recorded;
authorizing |
| 86 |
the reversal of such decision; providing a
procedure for |
| 87 |
reversal; providing that an association is not
obligated |
| 88 |
to pay for any reconstruction or repair expenses
for |
| 89 |
improvements made by an owner or the development
if an |
| 90 |
improvement benefits only the unit for which it
was |
| 91 |
installed; amending s. 718.115, F.S.; requiring
that |
| 92 |
certain expenses be designated as common
expenses; |
| 93 |
amending s. 718.116, F.S.; authorizing the
designee of a |
| 94 |
unit owner or mortgagee to request a certificate
of |
| 95 |
assessment; requiring that the fee for
preparation of such |
| 96 |
certificate be stated on the certificate;
providing for |
| 97 |
the establishment of such fees; providing for
payment of |
| 98 |
the fee; requiring that the fee be refunded if a
planned |
| 99 |
sale or mortgage does not occur; providing that
any such |
| 100 |
refund is the obligation of the unit owner and is |
| 101 |
collectable in the same manner as an assessment;
amending |
| 102 |
s. 718.117, F.S.; prohibiting the distribution of
proceeds |
| 103 |
from the sale of a condominium unit to a
lienholder from |
| 104 |
exceeding a unit owner's share of the proceeds;
creating |
| 105 |
s. 720.30851, F.S.; requiring that the
association provide |
| 106 |
a certificate signed by an officer or agent of
the |
| 107 |
association stating all assessments and other
moneys owed |
| 108 |
to the association by the parcel owner or
mortgagee with |
| 109 |
respect to the parcel within a specified period
after the |
| 110 |
association's receipt of a request for an
estoppel |
| 111 |
certificate by an owner or mortgagee; providing
that any |
| 112 |
person other than a parcel owner who relies upon
a |
| 113 |
certificate receives the benefits and protection
thereof; |
| 114 |
providing that a summary proceeding may be
brought to |
| 115 |
compel the association to comply with the
requirement to |
| 116 |
provide a certificate; providing that the
prevailing party |
| 117 |
is entitled to recover reasonable attorney's
fees; |
| 118 |
requiring that the fee for preparation of such
certificate |
| 119 |
be stated on the certificate; providing for the |
| 120 |
establishment of such fees; providing for payment
of the |
| 121 |
fee; requiring that the fee be refunded if a
planned sale |
| 122 |
or mortgage does not occur; providing that any
such refund |
| 123 |
is the obligation of the parcel owner and is
collectable |
| 124 |
in the same manner as an assessment; amending s.
20.165, |
| 125 |
F.S.; changing the name of the Division of
Florida Land |
| 126 |
Sales, Condominiums, and Mobile Homes to the
Division of |
| 127 |
Florida Condominiums, Timeshares, and Mobile
Homes and the |
| 128 |
Division of Technology, Licensure, and Testing to
the |
| 129 |
Division of Technology; amending s. 215.20, F.S.; |
| 130 |
conforming the name of the division's trust fund
to |
| 131 |
correspond to the name change of the division;
amending s. |
| 132 |
450.33, F.S.; removing the requirement for a farm
labor |
| 133 |
contractor to file a set of fingerprints with the |
| 134 |
department; amending s. 455.203, F.S.;
authorizing the |
| 135 |
department to close and terminate deficient
license |
| 136 |
applications and to approve professional license |
| 137 |
applications meeting certain criteria; amending
s. |
| 138 |
455.217, F.S.; conforming terminology to changes
made by |
| 139 |
the act; amending s. 455.2273, F.S.; authorizing
the |
| 140 |
section to apply to disciplinary guidelines
adopted by all |
| 141 |
boards and divisions; amending s. 468.841, F.S.; |
| 142 |
clarifying exemption provisions for license
provisions |
| 143 |
governing mold-related services; amending s.
475.17, F.S.; |
| 144 |
revising requirements for licensure as a real
estate |
| 145 |
broker; amending s. 475.451, F.S.; deleting
requirements |
| 146 |
relating to the submission of certain real estate
course |
| 147 |
rosters to the department; amending s. 477.019,
F.S., |
| 148 |
relating to cosmetologists; allowing a student to
apply |
| 149 |
for licensure examination prior to graduation and
to |
| 150 |
practice prior to licensure; amending s. 489.105,
F.S.; |
| 151 |
clarifying that individuals and business entities
that |
| 152 |
sell manufactured and factory-built buildings can
legally |
| 153 |
enter into contracts for those sales; amending s.
489.511, |
| 154 |
F.S.; revising requirements for taking the
electrical or |
| 155 |
alarm system contractor certification
examination; |
| 156 |
providing requirements for certification;
amending s. |
| 157 |
489.515, F.S.; revising requirements for
certification as |
| 158 |
a certified contractor by the Electrical
Contractors' |
| 159 |
Licensing Board to reflect changes made to s.
489.511, |
| 160 |
F.S., by this act; renumbering s. 498.009, F.S.,
relating |
| 161 |
to the location of the division's offices;
amending and |
| 162 |
renumbering s. 498.011, F.S., relating to payment
of per |
| 163 |
diem, mileage, and other expenses for division
employees; |
| 164 |
providing for reimbursement of expenses for
on-site |
| 165 |
review; deleting the expense reimbursement for
inspection |
| 166 |
of subdivided lands; renumbering s. 498.013, F.S., |
| 167 |
relating to the authentication of records;
amending and |
| 168 |
renumbering s. 498.057, F.S., relating to service
of |
| 169 |
process; deleting provision that service may be
made by |
| 170 |
delivering a copy of the process to the division
director; |
| 171 |
providing that the division can be the petitioner
or the |
| 172 |
plaintiff; repealing ss. 498.001, 498.003,
498.005, |
| 173 |
498.007, 498.017, 498.021, 498.022, 498.023,
498.024, |
| 174 |
498.025, 498.027, 498.028, 498.029, 498.031,
498.033, |
| 175 |
498.035, 498.037, 498.039, 498.041, 498.047,
498.049, |
| 176 |
498.051, 498.053, 498.059, 498.061, and 498.063,
F.S., |
| 177 |
relating to regulation of land sales practices;
amending |
| 178 |
s. 548.0065, F.S.; including amateur mixed
martial arts in |
| 179 |
a provision relating to the authority of the
Florida State |
| 180 |
Boxing Commission to suspend amateur matches for
violation |
| 181 |
of certain health and safety standards; amending
s. |
| 182 |
548.008, F.S.; removing prohibition against
holding |
| 183 |
amateur mixed martial arts matches in this state;
amending |
| 184 |
s. 548.041, F.S.; providing additional licensure |
| 185 |
requirements for boxing participants; amending s.
718.501, |
| 186 |
F.S.; providing additional powers and duties of
the |
| 187 |
division; providing for additional enforcement
proceedings |
| 188 |
for carrying out the purposes of ch. 718, F.S.;
deleting |
| 189 |
the payment of money by a developer to a
condominium |
| 190 |
association as a permissible affirmative action;
providing |
| 191 |
for actions of conservator or receiver; providing
for |
| 192 |
application to circuit court for an order of
restitution; |
| 193 |
providing for imposition of civil penalties and
award of |
| 194 |
court costs, attorney's fees, and costs of
investigation |
| 195 |
under certain circumstances; providing for
contracting for |
| 196 |
investigative services; providing for acceptance
of |
| 197 |
grants-in-aid; requiring the cooperation with
similar |
| 198 |
agencies on establishment of certain procedures, |
| 199 |
standards, and forms; providing what constitutes |
| 200 |
completeness of notice; authorizing the division
to issue |
| 201 |
a notice to show cause; providing conforming
changes; |
| 202 |
amending s. 718.509, F.S., and transferring,
renumbering, |
| 203 |
and amending s. 498.019, F.S.; consolidating and
revising |
| 204 |
provisions relating to the creation, purposes,
and sources |
| 205 |
of funds of the Division of Florida Condominiums, |
| 206 |
Timeshares, and Mobile Homes Trust Fund; revising |
| 207 |
provisions to conform to the change in division
name; |
| 208 |
providing for the deposit of moneys resulting
from an |
| 209 |
administrative final order; amending s. 721.03,
F.S.; |
| 210 |
clarifying that timeshare plan includes a
nonspecific |
| 211 |
multisite timeshare plan; amending ss. 73.073,
190.009, |
| 212 |
192.037, 213.053, 326.002, 326.006, 380.05,
380.06, |
| 213 |
380.0651, 381.0065, 455.116, 475.455, 494.008,
509.512, |
| 214 |
517.301, 559.935, 718.103, 718.105, 718.1255,
718.5011, |
| 215 |
718.502, 718.504, 718.508, 718.608, 719.103,
719.1255, |
| 216 |
719.501, 719.502, 719.504, 719.508, 719.608,
720.301, |
| 217 |
720.401, 721.05, 721.07, 721.08, 721.26, 721.28,
721.301, |
| 218 |
721.50, 723.003, 723.006, 723.009, and 723.0611,
F.S., to |
| 219 |
conform; providing effective dates. |
| 220 |
|
| 221 |
Be It Enacted by the Legislature of the State of
Florida: |
| 222 |
|
| 223 |
Section 1. Paragraph
(b) of subsection (1) of section |
| 224 |
718.111, Florida Statutes, as amended by section
6 of House Bill |
| 225 |
995, enacted in the 2008 Regular Session, is
amended to read: |
| 226 |
718.111 The
association.-- |
| 227 |
(1) CORPORATE
ENTITY.-- |
| 228 |
(b) A
director of the association who is present at a |
| 229 |
meeting of its board at which action on any
corporate matter is |
| 230 |
taken shall be presumed to have assented to the
action taken |
| 231 |
unless he or she votes against such action or
abstains from |
| 232 |
voting in respect thereto because of an
asserted conflict of |
| 233 |
interest. A director of the association
who abstains from voting |
| 234 |
on any action taken on any corporate matter
shall be presumed to |
| 235 |
have taken no position with regard to the
action. Directors may |
| 236 |
not vote by proxy or by secret ballot at board
meetings, except |
| 237 |
that officers may be elected by secret ballot. A
vote or |
| 238 |
abstention for each member present shall be
recorded in the |
| 239 |
minutes. |
| 240 |
Section 2. The
amendments to section 718.111, Florida |
| 241 |
Statutes, in this act prevail over any
conflicting amendments to |
| 242 |
that section contained in HB 995 and enacted
during the 2008 |
| 243 |
Regular Session. |
| 244 |
Section 3. Subsection
(11) of section 718.111, Florida |
| 245 |
Statutes, is amended to read: |
| 246 |
718.111 The
association.-- |
| 247 |
(11) INSURANCE.--In
order to protect the safety, health, |
| 248 |
and welfare of the people of the State of Florida
and to ensure |
| 249 |
consistency in the provision of insurance
coverage to |
| 250 |
condominiums and their unit owners, this
subsection applies |
| 251 |
paragraphs (a), (b), and (c) are deemed to
apply to every |
| 252 |
residential condominium in the state, regardless
of the date of |
| 253 |
its declaration of condominium. It is the intent
of the |
| 254 |
Legislature to encourage lower or stable
insurance premiums for |
| 255 |
associations described in this subsection section. |
| 256 |
(a) Adequate
hazard insurance, regardless of any |
| 257 |
requirement in the declaration of condominium
for coverage by |
| 258 |
the association for full insurable value,
replacement cost, or |
| 259 |
similar coverage, shall be based upon the
replacement cost of |
| 260 |
the property to be insured as determined by an
independent |
| 261 |
insurance appraisal or update of a prior
appraisal. The full |
| 262 |
insurable value shall be determined at least
once every 36 |
| 263 |
months. |
| 264 |
1. An
association or group of associations may provide |
| 265 |
adequate hazard insurance through a
self-insurance fund that |
| 266 |
complies with the requirements of ss.
624.460-624.488. |
| 267 |
2. The
association may also provide adequate hazard |
| 268 |
insurance coverage for a group of no fewer
than three |
| 269 |
communities created and operating under this
chapter, chapter |
| 270 |
719, chapter 720, or chapter 721 by obtaining
and maintaining |
| 271 |
for such communities insurance coverage
sufficient to cover an |
| 272 |
amount equal to the probable maximum loss for
the communities |
| 273 |
for a 250-year windstorm event. Such probable
maximum loss must |
| 274 |
be determined through the use of a competent
model that has been |
| 275 |
accepted by the Florida Commission on
Hurricane Loss Projection |
| 276 |
Methodology. No policy or program providing
such coverage shall |
| 277 |
be issued or renewed after July 1, 2008,
unless it has been |
| 278 |
reviewed and approved by the Office of
Insurance Regulation. |
| 279 |
The review and approval shall include approval
of the policy |
| 280 |
and related forms pursuant to ss. 627.410 and
627.411, approval |
| 281 |
of the rates pursuant to s. 627.062, a
determination that the |
| 282 |
loss model approved by the Commission was
accurately and |
| 283 |
appropriately applied to the insured
structures to determine the |
| 284 |
250-year probable maximum loss, and a
determination that |
| 285 |
complete and accurate disclosure of
all material provisions is |
| 286 |
provided to condominium unit owners prior to
execution of the |
| 287 |
agreement by a condominium association. |
| 288 |
3. When
determining the adequate amount of hazard |
| 289 |
insurance coverage, the association may
consider deductibles as |
| 290 |
determined by this subsection. |
| 291 |
(b) If
an association is a developer-controlled |
| 292 |
association, the association shall exercise
its best efforts to |
| 293 |
obtain and maintain insurance as described in
paragraph (a). |
| 294 |
Failure to obtain and maintain adequate hazard
insurance during |
| 295 |
any period of developer control constitutes a
breach of |
| 296 |
fiduciary responsibility by the
developer-appointed members of |
| 297 |
the board of directors of the association,
unless the members |
| 298 |
can show that despite such failure, they have
made their best |
| 299 |
efforts to maintain the required coverage. |
| 300 |
(c) Policies
may include deductibles as determined by the |
| 301 |
board. |
| 302 |
1. The
deductibles shall be consistent with industry |
| 303 |
standards and prevailing practice for
communities of similar |
| 304 |
size and age, and having similar construction
and facilities in |
| 305 |
the locale where the condominium property is
situated. |
| 306 |
2. The
deductibles may be based upon available funds, |
| 307 |
including reserve accounts, or predetermined
assessment |
| 308 |
authority at the time the insurance is
obtained. |
| 309 |
3. The
board shall establish the amount of deductibles |
| 310 |
based upon the level of available funds and
predetermined |
| 311 |
assessment authority at a meeting of the
board. Such meeting |
| 312 |
shall be open to all unit owners in the manner
set forth in s. |
| 313 |
718.112(2)(e). The notice of such meeting must
state the |
| 314 |
proposed deductible and the available funds
and the assessment |
| 315 |
authority relied upon by the board and
estimate any potential |
| 316 |
assessment amount against each unit, if any.
The meeting |
| 317 |
described in this paragraph may be held in
conjunction with a |
| 318 |
meeting to consider the proposed budget or an
amendment thereto. |
| 319 |
(d) An
association controlled by unit owners operating as |
| 320 |
a residential condominium shall use its best
efforts to obtain |
| 321 |
and maintain adequate insurance to protect the
association, the |
| 322 |
association property, the common elements, and
the condominium |
| 323 |
property that is required to be insured by the
association |
| 324 |
pursuant to this subsection. |
| 325 |
(e) The
declaration of condominium as originally recorded, |
| 326 |
or as amended pursuant to procedures provided
therein, may |
| 327 |
provide that condominium property consisting
of freestanding |
| 328 |
buildings comprised of no more than one
building in or on such |
| 329 |
unit need not be insured by the association if
the declaration |
| 330 |
requires the unit owner to obtain adequate
insurance for the |
| 331 |
condominium property. An association may also
obtain and |
| 332 |
maintain liability insurance for directors and
officers, |
| 333 |
insurance for the benefit of association
employees, and flood |
| 334 |
insurance for common elements, association
property, and units. |
| 335 |
(f) Every
hazard insurance policy issued or renewed on or |
| 336 |
after January 1, 2009, for the purpose of
protecting the |
| 337 |
condominium shall provide primary coverage
for: |
| 338 |
1. All
portions of the condominium property as originally |
| 339 |
installed or replacement of like kind and
quality, in accordance |
| 340 |
with the original plans and specifications. |
| 341 |
2. All
alterations or additions made to the condominium |
| 342 |
property or association property pursuant to
s. 718.113(2). |
| 343 |
3. The
coverage shall exclude all personal property within |
| 344 |
the unit or limited common elements, and
floor, wall, and |
| 345 |
ceiling coverings, electrical fixtures,
appliances, water |
| 346 |
heaters, water filters, built-in cabinets and
countertops, and |
| 347 |
window treatments, including curtains, drapes,
blinds, hardware, |
| 348 |
and similar window treatment components, or
replacements of any |
| 349 |
of the foregoing. |
| 350 |
(g) Every
hazard insurance policy issued or renewed on or |
| 351 |
after January 1, 2009, to an individual unit
owner must contain |
| 352 |
a provision stating that the coverage afforded
by such policy is |
| 353 |
excess coverage over the amount recoverable
under any other |
| 354 |
policy covering the same property. Such
policies must include |
| 355 |
special assessment coverage of no less than
$2,000 per |
| 356 |
occurrence. An insurance policy issued to an
individual unit |
| 357 |
owner providing such coverage does not provide
rights of |
| 358 |
subrogation against the condominium
association operating the |
| 359 |
condominium in which such individual's unit is
located. |
| 360 |
1. All
improvements or additions to the condominium |
| 361 |
property that benefit fewer than all unit
owners shall be |
| 362 |
insured by the unit owner or owners having the
use thereof, or |
| 363 |
may be insured by the association at the cost
and expense of the |
| 364 |
unit owners having the use thereof. |
| 365 |
2. The
association shall require each owner to provide |
| 366 |
evidence of a currently effective policy of
hazard and liability |
| 367 |
insurance upon request, but not more than once
per year. Upon |
| 368 |
the failure of an owner to provide a
certificate of insurance |
| 369 |
issued by an insurer approved to write such
insurance in this |
| 370 |
state within 30 days after the date on which a
written request |
| 371 |
is delivered, the association may purchase a
policy of insurance |
| 372 |
on behalf of an owner. The cost of such a
policy, together with |
| 373 |
reconstruction costs undertaken by the
association but which are |
| 374 |
the responsibility of the unit owner, may be
collected in the |
| 375 |
manner provided for the collection of
assessments in s. 718.116. |
| 376 |
3. All
reconstruction work after a casualty loss shall be |
| 377 |
undertaken by the association except as
otherwise authorized in |
| 378 |
this section. A unit owner may undertake
reconstruction work on |
| 379 |
portions of the unit with the prior written
consent of the board |
| 380 |
of administration. However, such work may be
conditioned upon |
| 381 |
the approval of the repair methods, the
qualifications of the |
| 382 |
proposed contractor, or the contract that is
used for that |
| 383 |
purpose. A unit owner shall obtain all
required governmental |
| 384 |
permits and approvals prior to commencing
reconstruction. |
| 385 |
4. Unit
owners are responsible for the cost of |
| 386 |
reconstruction of any portions of the
condominium property for |
| 387 |
which the unit owner is required to carry
casualty insurance, |
| 388 |
and any such reconstruction work undertaken by
the association |
| 389 |
shall be chargeable to the unit owner and
enforceable as an |
| 390 |
assessment pursuant to s. 718.116. The
association must be an |
| 391 |
additional named insured and loss payee on all
casualty |
| 392 |
insurance policies issued to unit owners in
the condominium |
| 393 |
operated by the association. |
| 394 |
5. A
multicondominium association may elect, by a majority |
| 395 |
vote of the collective members of the
condominiums operated by |
| 396 |
the association, to operate such condominiums
as a single |
| 397 |
condominium for purposes of insurance matters,
including, but |
| 398 |
not limited to, the purchase of the hazard
insurance required by |
| 399 |
this section and the apportionment of
deductibles and damages in |
| 400 |
excess of coverage. The election to aggregate
the treatment of |
| 401 |
insurance premiums, deductibles, and excess
damages constitutes |
| 402 |
an amendment to the declaration of all
condominiums operated by |
| 403 |
the association, and the costs of insurance
shall be stated in |
| 404 |
the association budget. The amendments shall
be recorded as |
| 405 |
required by s. 718.110. |
| 406 |
(h) The
association shall maintain insurance or fidelity |
| 407 |
bonding of all persons who control or disburse
funds of the |
| 408 |
association. The insurance policy or fidelity
bond must cover |
| 409 |
the maximum funds that will be in the custody
of the association |
| 410 |
or its management agent at any one time. As
used in this |
| 411 |
paragraph, the term "persons who control
or disburse funds of |
| 412 |
the association" includes, but is not
limited to, those |
| 413 |
individuals authorized to sign checks on
behalf of the |
| 414 |
association, and the president, secretary, and
treasurer of the |
| 415 |
association. The association shall bear the
cost of any such |
| 416 |
bonding. |
| 417 |
(i) The
association may amend the declaration of |
| 418 |
condominium without regard to any requirement
for approval by |
| 419 |
mortgagees of amendments affecting insurance
requirements for |
| 420 |
the purpose of conforming the declaration of
condominium to the |
| 421 |
coverage requirements of this subsection. |
| 422 |
(j) Any
portion of the condominium property required to be |
| 423 |
insured by the association against casualty
loss pursuant to |
| 424 |
paragraph (f) which is damaged by casualty
shall be |
| 425 |
reconstructed, repaired, or replaced as
necessary by the |
| 426 |
association as a common expense. All hazard
insurance |
| 427 |
deductibles, uninsured losses, and other
damages in excess of |
| 428 |
hazard insurance coverage under the hazard
insurance policies |
| 429 |
maintained by the association are a common
expense of the |
| 430 |
condominium, except that: |
| 431 |
1. A
unit owner is responsible for the costs of repair or |
| 432 |
replacement of any portion of the condominium
property not paid |
| 433 |
by insurance proceeds, if such damage is
caused by intentional |
| 434 |
conduct, negligence, or failure to comply with
the terms of the |
| 435 |
declaration or the rules of the association by
a unit owner, the |
| 436 |
members of his or her family, unit occupants,
tenants, guests, |
| 437 |
or invitees, without compromise of the
subrogation rights of any |
| 438 |
insurer as set forth in paragraph (g). |
| 439 |
2. The
provisions of subparagraph 1. regarding the |
| 440 |
financial responsibility of a unit owner for
the costs of |
| 441 |
repairing or replacing other portions of the
condominium |
| 442 |
property also applies to the costs of repair
or replacement of |
| 443 |
personal property of other unit owners or the
association, as |
| 444 |
well as other property, whether real or
personal, which the unit |
| 445 |
owners are required to insure under paragraph
(g). |
| 446 |
3. To
the extent the cost of repair or reconstruction for |
| 447 |
which the unit owner is responsible under this
paragraph is |
| 448 |
reimbursed to the association by insurance
proceeds, and, to the |
| 449 |
extent the association has collected the cost
of such repair or |
| 450 |
reconstruction from the unit owner, the
association shall |
| 451 |
reimburse the unit owner without the waiver of
any rights of |
| 452 |
subrogation. |
| 453 |
4. The
association is not obligated to pay for repair or |
| 454 |
reconstruction or repairs of casualty losses
as a common expense |
| 455 |
if the casualty losses were known or should
have been known to a |
| 456 |
unit owner and were not reported to the
association until after |
| 457 |
the insurance claim of the association for
that casualty was |
| 458 |
settled or resolved with finality, or denied
on the basis that |
| 459 |
it was untimely filed. |
| 460 |
(k) An
association may, upon the approval of a majority of |
| 461 |
the total voting interests in the association,
opt out of the |
| 462 |
provisions of paragraph (j) for the allocation
of repair or |
| 463 |
reconstruction expenses and allocate repair or
reconstruction |
| 464 |
expenses in the manner provided in the
declaration as originally |
| 465 |
recorded or as amended. Such vote may be
approved by the voting |
| 466 |
interests of the association without regard to
any mortgagee |
| 467 |
consent requirements. |
| 468 |
(l) In
a multicondominium association that has not |
| 469 |
consolidated its financial operations under s.
718.111(6), any |
| 470 |
condominium operated by the association may
opt out of the |
| 471 |
provisions of paragraph (j) with the approval
of a majority of |
| 472 |
the total voting interests in that
condominium. Such vote may be |
| 473 |
approved by the voting interests without
regard to any mortgagee |
| 474 |
consent requirements. |
| 475 |
(m) Any
association or condominium voting to opt out of |
| 476 |
the guidelines for repair or reconstruction
expenses as |
| 477 |
described in paragraph (j) must record a
notice setting forth |
| 478 |
the date of the opt-out vote and the page of
the official |
| 479 |
records book on which the declaration is
recorded. The decision |
| 480 |
to opt out is effective upon the date of
recording of the notice |
| 481 |
in the public records by the association. An
association that |
| 482 |
has voted to opt out of paragraph (j) may
reverse that decision |
| 483 |
by the same vote required in paragraphs (k)
and (l), and notice |
| 484 |
thereof shall be recorded in the official
records. |
| 485 |
(n) The
association is not obligated to pay for any |
| 486 |
reconstruction or repair expenses due to
casualty loss to any |
| 487 |
improvements installed by a current or former
owner of the unit |
| 488 |
or by the developer if the improvement
benefits only the unit |
| 489 |
for which it was installed and is not part of
the standard |
| 490 |
improvements installed by the developer on all
units as part of |
| 491 |
original construction, whether or not such
improvement is |
| 492 |
located within the unit. This paragraph does
not relieve any |
| 493 |
party of its obligations regarding recovery
due under any |
| 494 |
insurance implemented specifically for any
such improvements. |
| 495 |
(o) The
provisions of this subsection shall not apply to |
| 496 |
timeshare condominium associations. Insurance
for timeshare |
| 497 |
condominium associations shall be maintained
pursuant to s. |
| 498 |
721.165. Therefore, the Legislature
requires a report to be |
| 499 |
prepared by the Office of Insurance Regulation
of the Department |
| 500 |
of Financial Services for publication 18
months from the |
| 501 |
effective date of this act, evaluating premium
increases or |
| 502 |
decreases for associations, unit owner premium
increases or |
| 503 |
decreases, recommended changes to better
define common areas, or |
| 504 |
any other information the Office of Insurance
Regulation deems |
| 505 |
appropriate. |
| 506 |
(a) A
unit-owner controlled association operating a |
| 507 |
residential condominium shall use its best
efforts to obtain and |
| 508 |
maintain adequate insurance to protect the
association, the |
| 509 |
association property, the common elements, and
the condominium |
| 510 |
property required to be insured by the
association pursuant to |
| 511 |
paragraph (b). If the association is developer
controlled, the |
| 512 |
association shall exercise due diligence to
obtain and maintain |
| 513 |
such insurance. Failure to obtain and maintain
adequate |
| 514 |
insurance during any period of developer
control shall |
| 515 |
constitute a breach of fiduciary
responsibility by the |
| 516 |
developer-appointed members of the board of
directors of the |
| 517 |
association, unless said members can show that
despite such |
| 518 |
failure, they have exercised due diligence.
The declaration of |
| 519 |
condominium as originally recorded, or amended
pursuant to |
| 520 |
procedures provided therein, may require that
condominium |
| 521 |
property consisting of freestanding buildings
where there is no |
| 522 |
more than one building in or on such unit need
not be insured by |
| 523 |
the association if the declaration requires
the unit owner to |
| 524 |
obtain adequate insurance for the condominium
property. An |
| 525 |
association may also obtain and maintain
liability insurance for |
| 526 |
directors and officers, insurance for the
benefit of association |
| 527 |
employees, and flood insurance for common
elements, association |
| 528 |
property, and units. Adequate insurance,
regardless of any |
| 529 |
requirement in the declaration of condominium
for coverage by |
| 530 |
the association for "full insurable
value," "replacement cost," |
| 531 |
or the like, may include reasonable
deductibles as determined by |
| 532 |
the board based upon available funds or
predetermined assessment |
| 533 |
authority at the time that the insurance is
obtained. |
| 534 |
1. Windstorm
insurance coverage for a group of no fewer |
| 535 |
than three communities created and operating
under this chapter, |
| 536 |
chapter 719, chapter 720, or chapter 721 may
be obtained and |
| 537 |
maintained for the communities if the
insurance coverage is |
| 538 |
sufficient to cover an amount equal to the
probable maximum loss |
| 539 |
for the communities for a 250-year windstorm
event. Such |
| 540 |
probable maximum loss must be determined
through the use of a |
| 541 |
competent model that has been accepted by the
Florida Commission |
| 542 |
on Hurricane Loss Projection Methodology. Such
insurance |
| 543 |
coverage is deemed adequate windstorm
insurance for the purposes |
| 544 |
of this section. |
| 545 |
2. An
association or group of associations may self-insure |
| 546 |
against claims against the association, the
association |
| 547 |
property, and the condominium property
required to be insured by |
| 548 |
an association, upon compliance with the
applicable provisions |
| 549 |
of ss. 624.460-624.488, which shall be
considered adequate |
| 550 |
insurance for the purposes of this section. A
copy of each |
| 551 |
policy of insurance in effect shall be made
available for |
| 552 |
inspection by unit owners at reasonable times. |
| 553 |
(b) Every
hazard insurance policy issued or renewed on or |
| 554 |
after January 1, 2004, to protect the
condominium shall provide |
| 555 |
primary coverage for: |
| 556 |
1. All
portions of the condominium property located |
| 557 |
outside the units; |
| 558 |
2. The
condominium property located inside the units as |
| 559 |
such property was initially installed, or
replacements thereof |
| 560 |
of like kind and quality and in accordance
with the original |
| 561 |
plans and specifications or, if the original
plans and |
| 562 |
specifications are not available, as they
existed at the time |
| 563 |
the unit was initially conveyed; and |
| 564 |
3. All
portions of the condominium property for which the |
| 565 |
declaration of condominium requires coverage
by the association. |
| 566 |
|
| 567 |
Anything to the contrary notwithstanding, the
terms "condominium |
| 568 |
property," "building,"
"improvements," "insurable improvements," |
| 569 |
"common elements," "association
property," or any other term |
| 570 |
found in the declaration of condominium which
defines the scope |
| 571 |
of property or casualty insurance that a
condominium association |
| 572 |
must obtain shall exclude all floor, wall, and
ceiling |
| 573 |
coverings, electrical fixtures, appliances,
air conditioner or |
| 574 |
heating equipment, water heaters, water
filters, built-in |
| 575 |
cabinets and countertops, and window
treatments, including |
| 576 |
curtains, drapes, blinds, hardware, and
similar window treatment |
| 577 |
components, or replacements of any of the
foregoing which are |
| 578 |
located within the boundaries of a unit and
serve only one unit |
| 579 |
and all air conditioning compressors that
service only an |
| 580 |
individual unit, whether or not located within
the unit |
| 581 |
boundaries. The foregoing is intended to
establish the property |
| 582 |
or casualty insuring responsibilities of the
association and |