Louisiana 2020 Regular Session

Louisiana House Bill HB624

Introduced
2/28/20  
Introduced
2/28/20  
Refer
2/28/20  
Refer
2/28/20  
Refer
3/9/20  

Caption

Provides for insurance coverage and liability relative to condominium units

Impact

This legislation impacts the statutory framework surrounding condominium insurance, establishing clearer guidelines for liability allocation when a loss occurs. By stating that the unit owner's insurance covers betterments and improvements, it promotes accountability among unit owners regarding their individual enhancements. The amendment of existing laws also reinforces the association's ability to pursue costs not covered by their policies from negligent unit owners, elevating the expectation of due diligence from all parties involved in the condominium living arrangement.

Summary

House Bill 624 addresses the liability and insurance coverage concerning condominium and unit owner associations in Louisiana. The bill clarifies existing regulations by reinforcing the requirement for condominium associations to maintain insurance on common elements, while delineating the responsibilities of both the association and individual unit owners regarding property insurance claims. Specifically, it establishes that the association's insurance will remain primary for losses associated with common elements and structural components, while individual unit owner policies will cover enhancements and upgrades made to their units.

Sentiment

The sentiment surrounding HB 624 seems to be one of practical necessity, aiming to eliminate ambiguities that could lead to disputes between associations and unit owners regarding insurance claims. Advocates of the bill appreciate its clarity and the protective measures it puts in place for both the association and the individual unit owners. However, some may see it as a potential burden if the definitions and responsibilities it establishes lead to increased costs or conflicts regarding coverage.

Contention

One notable point of contention is whether the stipulation concerning the unit owner's insurance being primary over enhancements is detrimental to unit owners. Some advocates raise concerns that this could lead to increased insurance premiums for individual owners while placing the onus of liability onto them. Additionally, the ability to vary or waive insurance provisions for condominiums designated for nonresidential use is another aspect that could raise questions regarding its applicability in mixed-use developments.

Companion Bills

No companion bills found.

Previously Filed As

LA HB426

Provides with respect to insurance coverage in condominium units

LA HB2251

Condominiums; insurance coverage; claims

LA SB1015

Condominiums – Mandatory Insurance Coverage – Detached Units

LA HB1227

Condominiums - Mandatory Insurance Coverage - Detached Units

LA HB469

Provides relative to the Louisiana Condominium Act

LA HB553

Condominiums – Mandatory Insurance Coverage – Alterations

LA HB98

Condominiums - Mandatory Insurance Coverage - Alterations

LA SB403

Condominiums - Declarations and Mandatory Insurance Coverage - Alterations

LA HB1207

Condominiums - Mandatory Homeowners Insurance Coverage - Detached Units

LA HB1541

Condominiums - Mandatory Insurance Coverage

Similar Bills

HI SB744

Relating To Condominiums.

HI SB1601

Relating To Condominiums.

HI HB807

Relating To Condominiums.

MI SB0272

Housing: condominium; definition of undeveloped land; modify. Amends sec. 67 of 1978 PA 59 (MCL 559.167).

HI HCR24

Requesting The Auditor To Conduct A Sunrise Analysis Of Condominium Association Managers.

HI HR23

Requesting The Auditor To Conduct A Sunrise Analysis Of Condominium Association Managers.

CA AB534

Common interest developments: mechanics liens.

HI SB287

Relating To Agricultural Districts.