Bill Text: VA SB1125 | 2013 | Regular Session | Prefiled
Bill Title: Virginia Condominium Act; casualty insurance for common areas.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-01-28 - Passed by indefinitely in General Laws and Technology (15-Y 0-N) [SB1125 Detail]
Download: Virginia-2013-SB1125-Prefiled.html
13101538D Be it enacted by the General Assembly of Virginia: 1. That § 55-79.81 of the Code of Virginia is amended and reenacted as follows: §55-79.81. Insurance. A. The condominium instruments may require the unit owners' association, or the executive organ or managing agent on behalf of such association, to obtain: 1. A master casualty policy affording fire and extended coverage in an amount consonant with the full replacement value of the structures within the condominium, or of such structures that in whole or in part comprise portions of the common elements. Regardless of the boundaries of the condominium units, the insurance required by this subdivision shall include, without limitation, all portions of each building that are common elements, including limited common elements, all foundations, roofs, roof structures, and exterior walls, including windows and doors and the framing therefor, and all convertible space within the building. Such insurance shall cover the following items with respect to each condominium unit regardless of who is responsible for maintaining them under the condominium instruments: (i) the HVAC system serving the condominium unit, (ii) all sheetrock and plasterboard comprising the walls and ceilings of the condominium unit, and (iii) the following items within the condominium unit of the type and quality initially installed, or replacements thereof of like kind and quality in accordance with the original plans and specifications, or as they existed at the time the condominium unit was initially conveyed if the original plans and specifications are not available: floors and subfloors, wall, ceiling, and floor coverings; plumbing and electrical lines and fixtures; built-in cabinetry and fixtures; and appliances used for refrigeration, cooking, dishwashing, and laundry. Unless otherwise provided in the declaration, with respect to unfinished shell units conveyed by the declarant, the items in clause (iii) shall be insured by the condominium unit owner and the coverage required by this subdivision shall repair or reconstruct only those portions of the shell unit constructed by the declarant. With respect to any condominium units that have not been conveyed by the declarant at the time of an insured loss, the coverage required by this subdivision shall repair or reconstruct such units as they exist at the time of such loss. The executive organ may exclude from coverage required by this subdivision improvements made by the condominium unit owners and structures covered by builder's risk insurance, such coverage to be in an amount consonant with the full replacement value thereof, but only during such period of time as the builder's risk insurance remains in full force and effect and only on the condition that the association is named as an additional named insured. 2. A master liability policy, in an amount specified by the condominium instruments, covering the unit owners' association, the executive organ, if any, the managing agent, if any, all persons acting or who may come to act as agents or employees of any of the foregoing with respect to the condominium, and all unit owners and other persons entitled to occupy any unit or other portion of the condominium. 3. Such other policies as may be required by the condominium instruments, including, without limitation, workers' compensation insurance, liability insurance on motor vehicles owned by the unit owners' association, and specialized policies covering lands or improvements in which the unit owners' association has or shares ownership or other rights. B. Any unit owners' association collecting assessments for common expenses shall obtain and maintain a blanket fidelity bond or employee dishonesty insurance policy insuring the unit owners' association against losses resulting from theft or dishonesty committed by the officers, directors, or persons employed by the unit owners' association, or committed by any common interest community manager or employees of the common interest community manager. Such bond or insurance policy shall provide coverage in an amount equal to the lesser of $1 million or the amount of reserve balances of the unit owners' association plus one-fourth of the aggregate annual assessment of such unit owners' association. The minimum coverage amount shall be $10,000. The executive organ or common interest community manager may obtain such bond or insurance on behalf of the unit owners' association. C. When any policy of insurance has been obtained by or on behalf of the unit owners' association, written notice of the obtainment thereof and of any subsequent changes therein or termination thereof shall be promptly furnished to each unit owner by the officer required to send notices of meetings of the unit owners' association. Such notices shall be sent in accordance with the provisions of subsection A of §55-79.75. |