HLS 19RS-763 ENGROSSED
2019 Regular Session
HOUSE BILL NO. 426
BY REPRESENTATIVE HILFERTY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
CONDOMINIUMS: Provides with respect to insurance coverage in condominium units
1 AN ACT
2To amend and reenact R.S. 9:1123.112(C)(3) and (E) and to repeal R.S. 9:1123.112(C)(4),
3 relative to condominiums; to provide with respect to insurance policies; to provide
4 for a determination of liability; to provide with respect to the primary association
5 policy; to provide with respect to condominium bylaws; and to provide for related
6 matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 9:1123.112(C)(3) and (E) are hereby amended and reenacted to read
9as follows:
10 ยง1123.112. Insurance
11 * * *
12 C. Insurance policies carried pursuant to Subsection A must provide that:
13 * * *
14 (3) No act or omission by any unit owner, unless acting within the scope of
15 his authority on behalf of the association, will void the policy or be a condition to
16 recovery under the policy, and policy.
17 * * *
18 E.(1) An insurance policy issued to the association does not prevent a unit
19 owner from obtaining insurance for his own benefit.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 19RS-763 ENGROSSED
HB NO. 426
1 (2) When a unit owner purchases an insurance policy for his own benefit, the
2 provisions in the condominium association bylaws shall prevail when determining
3 whether the unit owner policy or the association policy covers a loss, taking fault
4 into consideration, as well as which party is responsible for the elements of the
5 property that sustained loss.
6 * * *
7 Section 2. R.S. 9:1123.112(C)(4) is hereby repealed in its entirety.
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 426 Engrossed 2019 Regular Session Hilferty
Abstract: Provides that condominium association bylaws shall determine which insurance
policy shall cover a loss.
Present law requires that condominium associations purchase property insurance on the
common elements and units to insure against all risks of direct physical loss.
Present law also requires the association to purchase comprehensive general liability
insurance, including medical payments, covering all occurrences commonly insured against
for death, bodily injury, and property damage arising out of or in connection with use,
ownership, or maintenance of the common elements.
Present law requires the association insurance to provide that each unit owner is insured
under the policy, that the insurer waives rights to subrogation against any unit owner, that
no act or omission by a unit owner will void the policy or be a condition to recovery, and
that if at a time of loss, there is another insurance in the name of the unit owner covering the
same property, the association policy is primary.
Present law provides that if at the time of a loss there is another insurance policy in the name
of a unit owner covering the same property covered by the association policy, the association
policy is primary insurance not contributing with the other insurance. Proposed law deletes
present law.
Present law provides that the association insurance policy does not prevent a unit owner
from obtaining insurance for his own benefit. Proposed law retains present law and further
provides that when a unit owner does purchase a policy and a loss is sustained, the
condominium association bylaws will determine which policy shall compensate for the loss,
taking into consideration the fault of the parties and which element of the property was
affected.
(Amends R.S. 9:1123.112(C)(3) and (E); Repeals R.S. 9:1123.112(C)(4))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.