Saturday, March 14, 2009

INSURANCE COVERAGE OF AIR CONDITIONERS

Hi all,
The following question comes from a CV Unit Owner by Email:
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In an item I saw in the Palm Beach Post. In the Wednesday's edition Page 16D [3/11/2009], an article by Gary Poliakoff ("Condo Consultant") - states:

"...under owner's 'HO6' policy. (Please note that effective Oct. 1, 2008, the law changed to delete air conditioning units, regardless of where located, from unit owner coverage and add them to the association's coverage)..."
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I think Dan may have spoken about this subject in a recent open Delegate Assembly meeting "fleetingly",
wherein, I believe, he implied that the government legal/Tallahassee types were talking about the compressor unit outside the Association building, but not the air handling system internal to the unit owner's inside area. Further, the question of the window a/c units that "hang" outside the building wall of each unit owner's condo was a further question in Dan's mind if I read (heard) him correctly.

Can you find out what the correct and current "scoop" is on this subject?
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In response, I shall quote sections of FS-718 be aware that this is not a Legal opinion; but simply researched information:

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718.111 The association.—
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(f) Every hazard insurance policy issued or renewed on or after January 1, 2009, for the purpose of protecting the condominium shall provide primary coverage for:-
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1. All portions of the condominium property as originally installed or replacement of like kind and quality, in accordance with the original plans and specifications.-
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2. All alterations or additions made to the condominium property or association property pursuant to s. 718.113(2).-
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3. The coverage shall exclude all personal property within the unit or limited common elements, and floor, wall, an ceiling coverings, electrical fixtures, appliances, water heaters, water filters, built-in cabinets and countertops, and window treatments, including curtains, drapes, blinds, hardware, and similar window treatment components, or replacements of any of the foregoing.
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OK! Here is where the interpretation comes in:
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1) The Air conditioners, both the compressors and the interior air handlers were indeed originally installed.
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2) Constitute an alteration to the property; EG: AC Units punched thru walls and hanging out on the Common Element.
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3) The AC units are no longer specifically excluded, as they were in past versions of the Statute.
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Therefore, it is my opinion that the Association must insure the Air conditioners, both the indoor and outdoor components against CASUALTY loss.
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No doubt there will be a number of comments on this matter, as there is undoubtedly some interpretive ambiguity in the new Statute.
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Perhaps Dan Gladstone will grace us with his input?
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It should be further noted that the Insurance Statute is under study for changes in the Florida Legislature. So, some parts of the law may be changed this year.
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Dave Israel

1 comment:

Anonymous said...

At the request of David Israel hereunder is the change of the new insurance law pertaining to air-conditioning.
There was a change with respect to air conditioning and heating equipment. Under the previous law (that was in effect before the changes of HB 601 on 7/1/08), the association was not required to insure air conditioning and heating equipment or air conditioning compressors that service only an individual unit, whether or not located within the or not boundaries. HB 601 changes this. The Association will (will means must) be required to insure air conditioning and heating equipment, including all air conditioning compressors.
In layman's words, the association is responsible to repair any air conditioning (central or wall-unit) in case of insurance casualty for example Hurricane, lightning, fire etc.. The association is not responsible to maintain the A/C, because of old age, corrosion, rust of when a lizard stops the fan...

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