This bill amends existing New Jersey law to prohibit condominium associations from assessing insurance deductibles to individual unit owners or groups of unit owners. Currently, associations can pass the cost of any deductible arising from a claim under their insurance policy to specific unit owners, which can create an unfair financial burden. The proposed legislation aims to ensure that all unit owners benefit from the collective risk management provided by the association's insurance policy, thereby promoting fairness and equity among unit owners.

In addition to the main provision, the bill includes several amendments to clarify legal language and definitions within the existing law, such as specifying that the meanings of terms used in the act are derived from P.L.1969, c.257 (C.46:8B-1 et seq.). It also emphasizes that the association cannot charge unit owners for insurance deductibles related to repairs of common elements unless the damage was intentionally caused by the unit owner or their tenant. This change is intended to protect unit owners from unexpected financial liabilities and to reinforce the principle of shared responsibility within the condominium community.

Statutes affected:
Introduced: 46:8B-3, 46:8B-15, 46:8B-24