Continuing my state-by-state review of mandatory condominium insurance requirements, condominium owners in Louisiana should look to title nine of the Louisiana Revised Statutes for insurance requirements pertaining to condominiums.
Section 1123.112 of the Louisiana Revised Statutes addresses insurance and states:
Commencing not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent reasonably available:
1. Property insurance on the common elements and units, exclusive of improvements and betterments installed in units by unit owners, insuring against all risks of direct physical loss commonly insured against. The total amount of insurance after application of any deductibles shall be not less than eighty percent of the actual cash value of the insured property, exclusive of land, excavations, foundations, and other items normally excluded from property policies; and
2. Comprehensive general liability insurance, including medical payments insurance, in an amount determined by the executive board but not less than any amount specified in the declaration, covering all occurrences commonly insured against for death, bodily injury, and property damage arising out of or in connection with the use, ownership, or maintenance of the common elements.
Insurance policies carried pursuant to the requirements above must provide that:
- Each unit owner is an insured person under the policy with respect to liability arising out of his ownership of an individual interest in the common elements or membership in the association.
- The insurer waives its right to subrogation under the policy against any unit owner of the condominium or members of his household.
- No act or omission by any unit owner, unless acting within the scope of his authority on behalf of the association, will void the policy or be a condition to recovery under the policy, and
- If, at the time of a loss under the policy, there is other insurance in the name of a unit owner covering the same property covered by the policy, the policy is primary insurance not contributing with the other insurance.
Individual condominium unit owners may obtain their own insurance, and the primary insurance held by the condominium insurance does not affect that right. As stated above, improvements or betterments made to individual units by the unit owners may not be covered by the primary insurance policy, so condominium unit owners should consider purchasing their own insurance policies to fill in any gaps.
Check back for my next post which will look at North Carolina requirements. If there is a state you would like me to address, enter a comment below, or email me at mlaur@merlinlawgroup.com.
