Unfortunately, we have witnessed a recent spate of fires that have occurred in various condominiums throughout Michigan. This has reminded us, and the associations that we represent, how important it is to have appropriate provisions in the condominium bylaws requiring co-owners to insure their units, and to enforce those provisions consistently.
Some co-owners mistakenly assume that the association insures the units as well as the common elements. While this may be the case in some limited situations, most governing documents will assign the responsibility for insuring the unit to the co-owner.
Well-drafted insurance provisions will include the following:
- Mandatory insurance of the unit by the co-owner, including standard features, contents, and living expenses if uninhabitable
- Requirement for submitting annual proof of insurance to the association
- If proof of insurance is not provided, the ability of the association to procure insurance on the co-owner’s behalf and charge the cost back to the co-owner as an assessment
If you are having difficulty enforcing your co-owner insurance provisions with respect to co-owners who have failed to get insurance or provide you sufficient proof of insurance, or if you do not yet have the appropriate provisions and need to amend your documents, it’s time to contact your experienced legal counsel for assistance before an accident happens. We have assisted many associations large and small with developing a customized approach, so let us know how we can help.