Answers provided by:
Karyl Dicker Foray, CIRMS, CRIS
Rosenthal Brothers, Inc
Deerfield |
Joel Davis, CPCU, CIC, CIRMS
Community Association
Underwriters of America, Inc.
Hoffman Estates |
Foray: There are various ways that an Association can require unit owners to provide proof of insurance. They can 1) make it a requirement under their Rules and Regulations or 2) through an amendment to their Declarations and Bylaws or 3) through a Board Resolution. Condo associations can only require proof of liability insurance (since the Association really doesn’t care if they have insurance to replace clothes, furniture, etc). See Section 12 (3)(h) of the Illinois Condominium Property Act for exact wording. If it is a townhome association and the association doesn’t insure the units at all then they can require that proof of property and liability be provided. Associations may fine unit owners who fail to provide proof of insurance, on a monthly basis, until the Certificate of Insurance is provided.
Davis: Section 12(h) of the Illinois Property Condominium Act addresses this issue. Once a rule has been adopted by a condo association requiring owners to provide proof of coverage, the board has the authority to impose fines for owners who don’t comply. Outside of fines, I suggest an informational meeting be held with owners to explain the importance of verifying unit owner coverage. Owners can easily request that his/her insurance agent set up their policy so automatic policy renewal information is sent to the Property Manager or member responsible for verification.
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