Public Act 98-0762 (IL)

Condominium Insurance


Effective date – 6/1/2015

Statutes Amended – 765 ILCS 605/12


 The Act amends the Condominium Act to provide that insurance issued or delivered to a condominium association shall provide coverage starting at the time the insurance is purchased and at subsequent renewal dates in an amount not less than the full insurable replacement cost of the insured property, less deductibles, and coverage sufficient to rebuild the insured property in compliance with building code requirements. The coverage shall include Coverage B (demolition costs) and Coverage C (increased cost of construction). The combined total of B and C shall be no less than 10 percent of each insured building value, or $500,000, whichever is less.

The Act requires that directors and officers liability coverage must include defense of non-monetary actions, defense of breach of contract and defense of decisions related to the placement or adequacy of insurance. This coverage must cover past, present and future board members that are acting in their capacity as members of the board of directors, the managing agent, and their respective employees.

The Act also amends the definition of “improvements and betterments” to mean all decorating, fixtures, and furnishings installed or added to and located within the boundaries of the unit, including electrical fixtures, appliances, air conditioning and heating equipment, water heaters, built-in cabinets installed by unit owners, or any other additions, alterations, or upgrades installed or purchased by any unit owner.


Bill Number: 
SB 3014
By: ATG Underwriting Department | Posted on: Mon, 06/15/2015 - 10:50am