By: Joshua Finley

Evolving legislation and regulation play a key role in shaping the condominium insurance landscape, according to industry expert Herb Dorow. Recently, Herb outlined how new laws aimed at multifamily housing can have unintended consequences for condo associations if not carefully considered. He also explained how proactive involvement in the legislative process enables beneficial reforms for Texas condo owners.

Legislative Changes and Unintended Consequences

While the intent of legislative changes is typically positive, Herb points out that broad reforms targeting multifamily housing often fail to account for the nuances of condominium ownership. “What seems like a great idea for a law can sometimes have unintended effects on an association,” he said.

He cited a law requiring carbon monoxide detectors in all new multifamily builds by a certain date as an example. While beneficial from a safety standpoint overall, the law did not delineate between rental apartments and individually owned condos.

“Generally, they can go in and put those in. But condominiums—you cannot enter their unit and just start to install. And so, what led to that was associations potentially, as a whole, being fined because one owner may not have adhered to the building code,” Herb described.

Without a carve-out for condos in the legislation, unintended compliance issues and fines could arise simply because of the nature of ownership rights. Well-intentioned reform had potential detriment.

The Importance of Proactive Involvement

Photo Courtesy: Herb Dorow

To safeguard against unintended legislative consequences, Herb emphasized proactive involvement in shaping new regulations. “We worked to actually carve out a section in the building code to differentiate condominium because that would have been detrimental,” he said regarding the detector law.

By having “skin in the game” through direct participation in the process, potential downsides can be mitigated. “It takes a lot of conversations instead of just emails and a piece of paper going back and forth to each other,” Herb noted regarding advocacy work. However, the long-term benefit for condo owners makes the effort worthwhile.

Herb himself has direct experience serving on condo association legislative committees. He believes open communication with lawmakers and legislators is key to balancing broad reform with condo-specific needs. By flagging potential points of conflict early, mutually agreeable solutions typically emerge.

Texas Condo Legislation Overview

When asked about the overall legislative landscape for Texas condo insurance, Herb indicated the current outlook is positive. “I think Texas is in a really great spot right now,” he said, crediting a highly engaged local community.

“In Texas, they have a great involvement. The members who sit on the Legislative Action Committee with me are smart and highly involved. And so going forward, I think they’re in a good spot,” he stated. Regular input and advocacy prevent the most detrimental provisions from advancing.

Herb also noted the critical role of professional lobbyists in monitoring all proposals that could impact condos. They regularly flag bills for further association review to address concerns. “We employ a lobbyist firm to review every bill in the House and Senate that has the potential to affect us and then send that bill to us for an alternate review,” he explained.

This comprehensive oversight, andHerb’s direct involvement in the process, enablerapid response to potential legislative pitfalls. While unintended consequences remain a possibility, active engagement provides reassurance.

While the Texas legislative climate appears positive currently, Herb knows rapid shifts can occur. “A bill does pop up here and there that we have to jump on and mobilize against,” he conceded. However, the relationships and open communication channels fostered in calmer times provide solid foundations to address unexpected reform proposals.

By laying legislative groundwork during periods of relative stability, Herb aims to safeguard condo association interests even in periods of rapid change. His proactive involvement aims to help ensure that new laws enhance Texas condo insurance availability and minimize unintended harm

Connect with Herb Dorow on LinkedIn or his website Herb Dorow | The Official Website of Herb Dorow, to stay updated on legislative impacts and insurance insights.

Disclaimer: This content is for informational purposes only and is not intended as financial advice, nor does it replace professional financial advice, investment advice, or any other type of advice. You should seek the advice of a qualified financial advisor or other professional before making any financial decisions.

Published by: Holy Minoza