IL SB3014

Property insurance must cover common elements and units at full insurable replacement cost, including Coverage B (demolition costs) and Coverage C (increased construction costs due to building code compliance), with combined Coverage B and C totaling at least 10% of building value or $500,000, whichever is less.

General liability insurance minimum of $1,000,000 required, covering the board, association, management agent, developer (as additional insured), and unit owners for claims related to common elements; coverage must include claims between insured parties.

Fidelity bond required for associations with 6+ dwelling units covering persons controlling association funds, in maximum available amount to protect all association funds plus reserves; management companies must also carry fidelity bonds.

Directors and officers liability coverage must be obtained at reasonable levels, covering non-monetary actions, breach of contract, and insurance placement decisions; must include past, present, and future board members, managing agents, and their employees as insureds.

Changes apply only to insurance policies issued or renewed on or after June 1, 2015.