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))