HLS 20RS-848 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 624
BY REPRESENTATIVE HILFERTY
CONDOMINIUMS: Provides for insurance coverage and liability relative to condominium
units
1 AN ACT
2To amend and reenact R.S. 9:1123.112(C), relative to condominiums; to provide with
3 respect to insurance policies; to provide with respect to the primary association
4 policy; to provide with respect to a unit owner's property insurance policy; to provide
5 relative to condominium restricted to nonresidential use; and to provide for related
6 matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 9:1123.112(C) is hereby amended and reenacted to read as follows:
9 ยง1123.112. Insurance
10 * * *
11 C. Insurance policies carried pursuant to Subsection A of this Section must
12 shall provide that all of the following:
13 (1) Each That each unit owner is an insured person under the policy with
14 respect to liability arising out of the unit owner's ownership of an individual interest
15 in the common elements or membership in the association.
16 (2) The That the association's insurer waives its right to subrogation under
17 the policy against any unit owner of the condominium or members of his household.
18 (3) No That no act or omission by any unit owner, unless acting within the
19 scope of his authority on behalf of the association, will void the policy or be a
20 condition to recovery under the policy.
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 20RS-848 ORIGINAL
HB NO. 624
1 (4)(a) A That when there is a loss under the policy described in Subsection
2 A of this Section and there is other insurance in the name of a unit owner covering
3 the same risk, a the unit owner's property insurance policy covering betterments and
4 improvements shall be primary for that unit owner's betterments and improvements
5 to the extent of the value of the betterments and improvements. The association
6 property insurance policy shall remain primary with respect to common elements,
7 structural elements and components, and fixtures and improvements of the
8 condominium units that are not classified as betterments and improvements to
9 include damages caused by the event giving rise to an the insurance claim.
10 (b) For purposes of this Subsection, betterments and improvements include
11 upgrades or improvements to a particular unit that are of a higher quality than those
12 originally constructed within the units subject to the condominium regime. The
13 replacement of worn or obsolete items shall not be considered betterments and
14 improvements unless the items are upgrades or improvements that are of a higher
15 quality than generally exist within units subject to the condominium regime. For
16 insurance purposes, at the time of any loss, all unit improvements and betterments
17 shall be considered the improvements and betterments of the current unit owner.
18 (5) Nothing in this Section shall be construed to require the association to
19 insure a unit owner's individual liability except as set forth in Paragraph (1) of this
20 Subsection. Nothing in this Section shall be construed to prevent the association
21 from pursuing any deductible or out-of-pocket expenses not covered by the
22 association's insurance policies from the negligent unit owner.
23 (6) The provisions of this Section may be varied or waived when all the units
24 of a condominium are restricted to nonresidential use.
25 * * *
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 20RS-848 ORIGINAL
HB NO. 624
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 624 Original 2020 Regular Session Hilferty
Abstract: Provides with respect to the liability of condominium and unit owner association
insurance policies.
Present law requires that condominium associations purchase property insurance on the
common elements and units to insure against all risks of direct physical loss and 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 provides that when a unit owner does purchase a policy and a loss is sustained,
the association policy shall remain primary for the loss of common elements, structural
elements and components, and fixtures and improvements of the condominium units. The
unit owner policy shall be responsible for betterments and improvements installed by the
unit owner. Proposed law clarifies present law to clearly state that present law applies when
the association's policy and the unit holder's policy cover the same risk.
Proposed law provides that provisions of present law may be varied or waived when all of
the units of a condominium are restricted to nonresidential use.
(Amends R.S. 9:1123.112(C))
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.