Ohio Code 5311.16 – Condominium insurance
Unless otherwise provided by the declaration or bylaws, the board of directors shall maintain, with the cost to be a common expense, all of the following:
Terms Used In Ohio Code 5311.16
- Agent: means any person who represents a developer or who acts for or on behalf of a developer in selling or offering to sell any ownership interest in a condominium development. See Ohio Code 5311.01
- Common elements: means , unless otherwise provided in the declaration, the following parts of the condominium property:
(1) The land described in the declaration;
(2) All other areas, facilities, places, and structures that are not part of a unit, including, but not limited to, the following:
(a) Foundations, columns, girders, beams, supports, supporting walls, roofs, halls, corridors, lobbies, stairs, stairways, fire escapes, entrances, and exits of buildings;
(b) Basements, yards, gardens, parking areas, garages, and storage spaces;
(c) Premises for the lodging of janitors or persons in charge of the property;
(d) Installations of central services, including, but not limited to, power, light, gas, hot and cold water, heating, refrigeration, air conditioning, and incinerating;
(e) Elevators, tanks, pumps, motors, fans, compressors, ducts, and, in general, all apparatus and installations existing for common use;
(f) Community and commercial facilities that are not listed in division (F)(2)(a), (b), (c), (d), or (e) of this section but provided for in the declaration;
(g) All parts of the condominium property that are not listed in division (F)(2)(a), (b), (c), (d), (e), or (f) of this section that are necessary or convenient to its existence, maintenance, and safety, that are normally in common use, or that have been designated as common elements in the declaration or drawings. See Ohio Code 5311.01
- Condominium: means a form of real property ownership in which a declaration has been filed submitting the property to the condominium form of ownership pursuant to this chapter and under which each owner has an individual ownership interest in a unit with the right to exclusive possession of that unit and an undivided ownership interest with the other unit owners in the common elements of the condominium property. See Ohio Code 5311.01
- Condominium property: means all real and personal property submitted to the provisions of this chapter, including land, the buildings, improvements, and structures on that land, the land under a water slip, the buildings, improvements, and structures that form or that are utilized in connection with that water slip, and all easements, rights, and appurtenances belonging to the land or to the land under a water slip. See Ohio Code 5311.01
- Declaration: includes all amendments to that declaration. See Ohio Code 5311.01
- Embezzlement: In most states, embezzlement is defined as theft/larceny of assets (money or property) by a person in a position of trust or responsibility over those assets. Embezzlement typically occurs in the employment and corporate settings. Source: OCC
- Person: includes an individual, corporation, business trust, estate, trust, partnership, and association. See Ohio Code 1.59
- Property: means real and personal property. See Ohio Code 1.59
- Unit: means the part of the condominium property that is designated as a unit in the declaration, is delineated as a unit on the drawings prepared pursuant to section 5311. See Ohio Code 5311.01
- Unit owners association: means the organization that administers the condominium property and that consists of all the owners of units in a condominium property. See Ohio Code 5311.01
(A) Liability insurance for all unit owners, their tenants, and all persons lawfully in possession or control of any part of the condominium property in an amount that it determines for personal injury or property damage arising from or relating to the common elements;
(B) For the benefit of all unit owners, fire and extended coverage insurance on all buildings and structures of the condominium property in an amount not less than ninety per cent of the replacement cost;
(C)(1) Blanket fidelity, crime, or dishonesty insurance coverage for any person who controls or disburses association funds. As used in division (C)(1) of this section, “person who controls or disburses association funds” means any individual with authority or access to sign checks, conduct electronic transfers, or otherwise withdraw funds from any association account or deposit, including the following:
(a) A management company’s principals and employees;
(b) A bookkeeper;
(c) The president, secretary, treasurer, any other board member, or employee of the unit owners association.
(2) All of the following apply to the insurance coverage required under division (C)(1) of this section:
(a) Coverage shall be for the maximum amount of funds that will be in the custody of the association or its designated agent at any one time plus three months of operating expenses.
(b) The insurance shall be the property of and for the sole benefit of the association and shall protect against theft, embezzlement, misappropriation, or any other unauthorized taking or loss of association funds.
(c) The policy shall include in its definition of “employee” the manager and the managing agent of the association’s funds or provide for this inclusion by an endorsement to the policy.
(d) The policy shall name the association as the insured party and shall include a provision requiring the issuer of the policy to provide a ten-day written notice to the association’s president or manager in the event of cancellation or substantial modification of the policy. The manager or managing agent, if any, of the association shall be the designated agent on the policy.
(e) If there is a change in the manager or the managing agent of the association, then within ten days of the effective start date, the new manager or managing agent shall notify the insurer of such change.
Last updated June 29, 2022 at 2:29 PM