Can a condominium association make an owner pay the amount of the associations insurance deductible?
The Georgia Condominium Act does allow deductibles to be assessed to owners if provided under the association’s legal documents. However, there are limits to this in some situations. Under the Act, an association can charge back up to $1,000.00 of a deductible to the unit owners (increasing to $2,500.00 effective July 1, 2004) for claims for fire, windstorm, hail, riot and civil commotion, aircraft, and automobiles. That coverage is known as “Fire and Extended Coverage.” This type of coverage generally excludes water damage. This water coverage is not required under the Act and is optional for associations. Consequently, there is no limit on the amount of a deductible that can be charged back to a unit owner for a water damage claim. However, with the limits on Fire and Extended Coverage deductible assessments Under the Act, many associations now are forced to accept policies with basic deductibles of $5,000, $10,000, $20,000, or more per occurrence.
