The Common Interest Ownership Act of 1984 (CIOA), with few exceptions, governs the creation and maintenance of condominium associations in Connecticut built on or after January 1984. A 2009 amendment to the CIOA charged the association with insuring the improvements and betterments installed by the unit owners, in addition to the units of the building. An exception is made when the declaration limits coverage for improvements and betterments, or the executive board decides to limit coverage after giving unit owners notice and an opportunity to comment. When the common interest community has more than 12 units and does not insure all improvements and betterments, the association must provide to the unit owner each year a schedule of property it insures. Amendments to the CIOA in 2011 changed this requirement for two unit associations. Included in the 2011 CIOA law revision is the exemption of a two-unit building (divided by a single horizontal or vertical boundary) with regard to the association’s requirement [Section 47-255(b)] to insure all of the units, and all improvements and betterments installed by the unit owners. An association need not insure two-unit buildings, or it may insure the units without the value of improvements or betterments. Now that association coverage is voluntary, some unit owners may be instructed to provide their own coverage for the units.
If you are a unit owner in a 2 unit condominium building, it is important to know what your association is covering before the loss. The Russell Agency is happy to meet with you and your fellow unit owner to discuss coverage available. A clear understanding of your insurance will make for happy neighbors.