Condominium regulations in Georgia are outlined in the Georgia Code. Section 44-3-107 specifically addresses insurance coverage requirements for condominiums. Broadly speaking, condominium unit owners are not obligated by statute to maintain insurance, but condominium associations are. Per the Code, condominium associations in Georgia must have casualty insurance policies and liability insurance policies.
The Code explicitly states that associations 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.
The condominium insurance policy must also provide coverage for the following items in each condominium unit, regardless of who is responsible for maintaining the unit under the condominium instruments:
- The HVAC system serving the condominium unit;
- All sheetrock and plaster board comprising the walls and ceilings of the condominium unit; and
- 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.
The unit owner is expected to insure the items listed in number 3 in an unfinished unit that has been turned over by the association. The insurance only covers the portions of the unit that were constructed by or on behalf of the association. The coverage detailed in number 3 also insures condominium units not yet purchased from the condominium association at the time of loss. The association is not required to provide coverage for improvements made by condominium unit owners or structures covered by builder’s risk insurance.
Condominium associations are also required to obtain commercial general liability insurance policies for bodily injury and property damage in an amount not less than $1 million for a single occurrence and $2 million aggregate.
Subrogation waivers are not addressed in the Georgia Code.
Although condominium unit owners are not required to obtain insurance unless they own an unfinished unit, those who own finished condominium units should still consider purchasing property insurance policies to cover their personal belongings, improvements made to their units, or themselves personally.