House Bill 0601: Relating to

Department of Business and Professional Regulation

H601    GENERAL BILL/CS/CS/2ND ENG by Policy & Budget Council; Jobs &
Entrepreneurship Council; Hudson; (CO-SPONSORS) Braynon; Dorworth; Ford;
Nelson; Schultz; Williams (Similar CS/CS/S 2086, Compare CS/H 0415,
CS/H 1249, H 1349, CS/CS/CS/S 0996, CS/S 2470)
    

Department of Business and Professional Regulation [EPCC]; Requires that hazard insurance be based upon replacement cost of property to be insured as determined by independent insurance appraisal or update of prior appraisal; changes name of Division of Florida Land Sales, Condominiums, & Mobile Homes to Division of Florida Condominiums, Timeshares, & Mobile Homes & changes name of Division of Technology, Licensure, & Testing to Division of Technology, etc. EFFECTIVE DATE:
07/01/2008 except as otherwise provided.
    

01/18/08 HOUSE Filed
01/27/08 HOUSE Referred to Jobs & Entrepreneurship Council; Policy & Budget
                  Council
02/07/08 HOUSE Referred to Business Regulation (JE) by Jobs &
                  Entrepreneurship Council
03/04/08 HOUSE Introduced, referred to Jobs & Entrepreneurship Council;
                  Policy & Budget Council -HJ 00048; Referred to Business
                  Regulation (JE) by Jobs & Entrepreneurship Council -HJ 00133
03/18/08 HOUSE On Committee agenda-- Business Regulation (JE), 03/20/08,
                  8:30 am, 306-H
03/20/08 HOUSE Favorable with 1 amendment(s) by Business Regulation (JE);
                  YEAS 11 NAYS 0 -HJ 00313; Now in Jobs & Entrepreneurship
                  Council -HJ 00313
03/28/08 HOUSE On Council agenda-- Jobs & Entrepreneurship Council,
                  04/01/08, 4:00 pm, Morris Hall
04/01/08 HOUSE CS by Jobs & Entrepreneurship Council; YEAS 14 NAYS 0
                  -HJ 00423
04/07/08 HOUSE CS read 1st time on 04/07/08 -HJ 00421; CS filed
04/08/08 HOUSE Now in Policy & Budget Council -HJ 00429
04/11/08 HOUSE On Council agenda-- Policy & Budget Council, 04/15/08, 9:00
                  am, 212-K
04/15/08 HOUSE CS/CS by- Policy & Budget Council; YEAS 33 NAYS 0
                  -HJ 00614
04/17/08 HOUSE CS read 1st time on 04/17/08 -HJ 00605; CS filed
04/18/08 HOUSE Placed on Calendar -HJ 00681
04/22/08 HOUSE Placed on Special Order Calendar
04/23/08 HOUSE Placed on Special Order Calendar; Read 2nd time -HJ 00736;
                  Amendment(s) adopted -HJ 00736
04/25/08 HOUSE Read 3rd time -HJ 00878; Amendment(s) adopted -HJ 00880; CS
                  passed as amended; YEAS 110 NAYS 0 -HJ 00880
04/25/08 SENATE In Messages
05/01/08 SENATE Received, referred to Regulated Industries; Banking and
                  Insurance; Judiciary -SJ 01258
05/02/08 SENATE Withdrawn from Regulated Industries; Banking and Insurance;
                  Judiciary; Substituted for CS/CS/SB 2086, SB 2498; Read 2nd
                  time; Amendment(s) adopted (465352, 227610, 040578); Read 3rd
                  time; CS passed as amended (465352, 227610, 040578); YEAS 40
                  NAYS 0
05/02/08 HOUSE In returning messages; Concurred; CS passed as amended;
                  YEAS 117 NAYS 0; Ordered engrossed, then enrolled


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