2020 Georgia Code
Title 44 - Property
Chapter 3 - Regulation of Specialized Land Transactions
Article 3 - Condominiums
§ 44-3-107. (For Effective Date, See note.) Insurance Coverage

1. The association shall obtain:
   1. A property insurance policy or policies affording fire and extended coverage insurance for and in an amount consonant with the full insurable replacement cost, less deductibles, of all buildings and structures within the condominium. Regardless of the boundaries of the condominium units, the insurance required by this paragraph shall include, without limitation, all portions of each building which 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:
      1. The HVAC system serving the condominium unit;
      2. All Sheetrock and plaster board comprising the walls and ceilings of the condominium unit; and
      3. 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 subparagraph (C) of this paragraph shall be insured by the condominium unit owner and the coverage required by this paragraph shall repair or reconstruct only those portions of the shell unit constructed by the declarant. With respect to any condominium units which have not been conveyed by the declarant at the time of an insured loss, the coverage required by this paragraph shall repair or reconstruct such units as they exist at the time of such loss. The association may exclude from coverage required by this paragraph 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 commercial general liability insurance policy or policies affording coverage for bodily injury and property damage in an amount not less than $1 million for a single occurrence and $2 million aggregate. The policy or policies shall cover the association, the board of directors and the officers of the association, all agents and employees of the association, and all unit owners and other persons entitled to occupy any unit or other portion of the condominium for occurrences commonly insured against arising out of or in connection with the use, ownership, or maintenance of the common elements or other portion of the condominium which the association has the responsibility to maintain; and
   3. Any additional types and amounts of insurance coverage as may be specified in the condominium instruments.
2. The association may obtain additional types and amounts of insurance as may be authorized by the board of directors.
3. (For effective date, see note.) In the event of a potential or submitted claim related to water damage or water peril on any insurance policy obtained by:
   1. An association, and upon written request by a unit owner to the association, the association or its designated agent shall, within five business days from the receipt of such request, provide to such owner a copy of the association's certificate of insurance for all such insurance obtained by the association that may apply to such potential claim or submitted claim. Such request shall state an address to which such information shall be directed and shall specify whether such information shall be available for pickup, mailed, or sent by electronic communication along with the specific address for mailing or electronic communication. When such claim related to water damage or water peril has been submitted, and upon written request by a unit owner to the association, the association or its designated agent shall, within five business days from the receipt of such request, provide the name, address, and telephone number of the insurance adjuster, if one has been identified to the association; or
   2. A unit owner, and upon written request by an association or its designated agent to a unit owner, the unit owner shall, within five business days from the receipt of such request, provide to the association or its designated agent a copy of the unit owner's certificate of insurance for all such insurance obtained by the unit owner that may apply to the potential claim or actual claim. Such request shall state an address to which such information is to be directed and shall specify whether such information shall be available for pickup, mailed, or sent by electronic communication along with the specific address for mailing or electronic communication. When such claim related to water damage or water peril has been submitted, and upon written request by the association to a unit owner, the unit owner or its designated agent shall, within five business days from the receipt of such request, provide the name, address, and telephone number of the insurance adjuster, if one has been identified to the unit owner.

      Nothing contained in this subsection shall require an association to obtain insurance related to water damage or water perils.

(Ga. L. 1975, p. 609, § 39; Ga. L. 1990, p. 227, § 12; Ga. L. 2008, p. 1030, § 1/HB 1121; Ga. L. 2020, p. 370, § 1/HB 1070.)

- For article, "Recommended Changes in the Law Affecting Condominium and Homeowner Associations in Georgia," see 1 Ga. St. U.L. Rev. 185 (1985).

JUDICIAL DECISIONS

"Extended coverage" did not include water perils.

- In a condominium owner's action against the condominium association for breach of contract after two separate water leaks in the owner's condominium unit, the trial court erred by holding that the Georgia Condominium Act, O.C.G.A. § 44-3-70, did not require the association to maintain coverage for water leak damage; rather, it was required to have "fire and extended coverage insurance". "Extended coverage" included windstorm, hail, aircraft, riot, vehicles, explosion, and smoke, not water. Villa Sonoma Perimeter Summit Condo. Ass'n v. Mainor, Ga. App. , S.E.2d (Sept. 28, 2020).

- In the condominium declaration, the purchase of additional insurance coverage was specified to be within the discretion of the board of directors, thus the board's decision not to maintain structural insurance coverage clearly fell within the parameters of that discretion. Fleetwood v. Wieuca N. Condominium Ass'n, 182 Ga. App. 15, 354 S.E.2d 623 (1987) (applying former Georgia Apartment Ownership Act).

Cited in Henning v. Cont'l Cas. Co., 254 F.3d 1291 (11th Cir. 2001).