House Bill 1121

Chair's Name: Tom Knox

Committee: Insurance

House Sponsor: Wendell Willard

HB 1121 clarifies the insurance that must be carried by condominium associations. The property insurance must cover all portions of each building as listed in detail in the bill, including foundations, roofs, exteriors, windows and doors, etc. The insurance must also cover in each unit the HVAC system, sheetrock and plaster, and items such as floors, plumbing, built-in cabinetry, etc. as was contained in the original  plans, regardless of who is responsible for maintaining them in the condominium instruments. Insurance for unfinished shell units varies depending on whether they have been conveyed by the declarant at the time of a loss. Also addressed are coverage amounts for commercial general liability policies and the ability of the associations to obtain additional types and amounts of insurance.

This committee substitute comes to the Floor under the Modified Open Rule. 

Chairman Knox’s Opinion of the legislation:

HB 1121 defines the ability and responsibility of condominium associations to insure certain components of condominiums to ensure that adequate insurance is in place to rebuild condominium buildings in the case of destruction of the building. This bill is a result of collaboration between the Community Association Institute, condominium associations, and insurance industry.

This Legislation:

•      Reduces Government and the Tax Burden by reducing the number of large residential losses for which there is no insurance, reducing the demand for government services in such cases.

•      Strengthens families by ensuring the correct insurance is in place so that families’ homes will be replaced promptly

•      Increases personal responsibility by promoting responsibility  on the part of condo associations in insuring their common area property.