25 LC 46 1174S
The Senate Committee on Insurance and Labor offered the following
substitute to SB 230:
A BILL TO BE ENTITLED
AN ACT
To amend Article 3 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated,1
relating to condominiums, so as to increase the maximum amount of insurance deductibles2
payable by unit owners; to provide for notice; to provide for related matters; to repeal3
conflicting laws; and for other purposes.4
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:5
SECTION 1.6
Article 3 of Chapter 3 of Title 44 of the Official Code of Georgia Annotated, relating to7
condominiums, is amended by revising Code Section 44-3-94, relating to damage or8
destruction of units, as follows:9
"44-3-94.10
(a) Unless otherwise provided in the condominium instruments, in the event of damage to11
or destruction of any unit by a casualty covered under insurance required to be maintained12
by the association pursuant to Code Section 44-3-107, the association shall cause the unit13
to be restored. Unless otherwise provided in the condominium instruments, any funds14
required for such restoration in excess of the insurance proceeds attributable thereto shall15
be paid by the unit owner of the unit; provided, however, that, in the event that the unit16
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owner of the unit together with the unit owners of other units to which two-thirds of the17
votes in the association pertain agree not to restore the unit, the unit shall not be restored18
and the entire undivided interest in the common elements pertaining to that unit shall then19
pertain to the remaining units, to be allocated to them in proportion to their undivided20
interests in the common elements, and the remaining portion of that unit shall thenceforth21
be a part of the common elements. Votes in the association and liability for future common22
expenses shall thereupon pertain to the remaining units, being allocated to them in23
proportion to their relative voting strength in the association and liability for common24
expenses, respectively. To the extent provided for in the condominium instruments, the25
association may allocate equitably the payment of a reasonable insurance deductible26
between the association and the unit owners affected by a casualty against which the27
association is required to insure; provided, however, that the amount of deductible which28
can be allocated to any one unit owner shall not exceed $5,000.00 $25,000.00 per casualty29
loss covered under any insurance required to be maintained by the association under this30
article. The existence of a reasonable deductible in any required insurance policy shall not31
be deemed a failure to maintain insurance as required by this Code section.32
(b) Each association in this state shall timely notify all unit owners within such association33
of any material change in such association's master policy deductible. Such notification34
shall be in writing and accomplished by depositing the notice in the United States mail to35
be dispatched by at least first class mail to the address of record of the unit owner. Such36
notice may alternatively be delivered, with the unit owner's written consent, in person, or37
through electronic transmittal or facsimile."38
SECTION 2.39
All laws and parts of laws in conflict with this Act are repealed.40
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