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The third area the bill changes is Directors and Officers insurance. Condominium associations are required by the Act to maintain Directors and Officers insurance. This insurance protects the condo board members from lawsuits against actions they take and decisions they make while serving on the board. While prudent and necessary, all Directors and Officers policies contain different policy language and exclusions. Actions covered under one policy may not be covered under another. SB 3014 makes it clear by stating that all Directors and Officers policies need to have coverage for the following:


 


 


 all past, present and future board members, as well as a third party building manager and their employees


The final insurance-related law change concerns that of condo unit insurance. An “HO-6” insurance policy is the standard homeowners insurance policy that can be purchased by a condo owner. The bill removes the ability of the condo association to purchase an HO-6 policy on a unit whose owner refuses to buy the insurance themselves. This means that the board will need to convince the unit owner to purchase this coverage or have the interior of the unit uninsured.


With the passing of SB 3014 there are undoubtedly many policies that are not in compliance with the new law and adjustments will have to be made. This will most likely impact premiums and it is important to work with a knowledgeable insurance broker who can access multiple markets on your behalf. Review your insurance prior to the June 1st deadline and you can have all the right answers for your $64,000 Question!


 


 


 


  


  


   


 


  


 


 


  


 


 





 


   


 


 


 48 | COMMON INTEREST® A Publication of CAI-Illinois Chapter


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