§ 34-36.1-3.13 Insurance. – (a) Commencing not later than the time of the first conveyance of a unit to aperson other than a declarant, the association shall maintain, to the extentreasonably available:
(1) Property insurance on the common elements insuringagainst all risks of direct physical loss commonly insured against or, in thecase of a conversion building, against fire and extended coverage perils. Thetotal amount of insurance after application of any deductibles shall be notless than eighty percent (80%) of the actual cash value of the insured propertyat the time the insurance is purchased and at each renewal date, exclusive ofland, excavations, foundations and other items normally excluded from propertypolicies; and
(2) Liability insurance, including medical paymentsinsurance, in an amount determined by the executive board but not less than anyamount specified in the declaration, covering all occurrences commonly insuredagainst for death, bodily injury, and property damage arising out of or inconnection with the use, ownership, or maintenance of the common elements andany property owned or leased by the association.
(b) In the case of a building containing units havinghorizontal boundaries described in the declaration, the insurance maintainedunder subdivision (a)(1), to the extent reasonably available, shall include theunits, but need not include improvements and betterments installed by unitowners.
(c) If the insurance described in subsections (a) and (b) isnot reasonably available, the association promptly shall cause notice of thatfact to be hand delivered or sent prepaid by United States mail to all unitowners. The declaration may require the association to carry any otherinsurance, and the association in any event may carry any other insurance itdeems appropriate to protect the association or the unit owners.
(d) Insurance policies carried pursuant to subsection (a)must provide that:
(1) Each unit owner is an insured person under the policywith respect to liability arising out of the owner's interest in the commonelements or membership in the association;
(2) The insurer waives its right to subrogation under thepolicy against any unit owner or member of the owner's household;
(3) No act or omission by any unit owner, unless actingwithin the scope of his or her authority on behalf of the association, willvoid the policy or be a condition to recovery under the policy; and
(4) If, at the time of a loss under the policy, there isother insurance in the name of a unit owner covering the same risk covered bythe policy, the association's policy provides primary insurance.
(e) Any loss covered by the property policy under subdivision(a)(1) and subsection (b) must be adjusted with the association, but theinsurance proceeds for that loss are payable to any insurance trusteedesignated for that purpose, or otherwise to the association, and not to anymortgagee or beneficiary under a deed of trust. The insurance trustee or theassociation shall hold any insurance proceeds in trust for unit owners and lienholders as their interests may appear. Subject to the provisions of subsection(h), the proceeds must be disbursed first for the repair or restoration of thedamaged property, and unit owners and lien holders are not entitled to receivepayment of any portion of the proceeds unless there is a surplus of proceedsafter the property has been completed, repaired or restored, or the condominiumis terminated.
(f) An insurance policy issued to the association does notprevent a unit owner from obtaining insurance for his or her own benefit.
(g) An insurer that has issued an insurance policy under thissection shall issue certificates or memoranda of insurance to the associationand, upon written request, to any unit owner, mortgagee, or beneficiary under adeed of trust. The insurer issuing the policy may not cancel or refuse to renewit until thirty (30) days after notice of the proposed cancellation ornonrenewal has been mailed to the association, each unit owner and eachmortgagee or beneficiary under a deed of trust to whom a certificate ormemorandum of insurance has been issued at their respective last knownaddresses.
(h) Any portion of the condominium for which insurance isrequired under this section which is damaged or destroyed shall be repaired orreplaced promptly by the association unless (1) the condominium is terminated,(2) repair or replacement would be illegal under any state or local health orsafety statute or ordinance, or (3) eighty percent (80%) of the unit owners,including every owner of a unit or assigned limited common element which willnot be rebuilt, vote not to rebuild unless insurance proceeds are adequate torebuild. The cost of repair or replacement in excess of insurance proceeds andreserves is a common expense. If the entire condominium is not repaired orreplaced, (1) the insurance proceeds attributable to the damaged commonelements must be used to restore the damaged area to a condition compatiblewith the remainder of the condominium, (2) the insurance proceeds attributableto units and limited common elements which are not rebuilt must be distributedto the owners of those units and the owners of the units to which those limitedcommon elements were allocated, or to lienholders, as their interests mayappear, and (3) the remainder of the proceeds must be distributed to all theunit owners or lienholders, as their interests may appear, in proportion to thecommon element interests of all the units. If the unit owners vote not torebuild any unit, that unit's allocated interests are automatically reallocatedupon the vote as if the unit had been condemned under § 34-36.1-1.07(a)and the association promptly shall prepare, execute, and record an amendment tothe declaration reflecting the reallocations. Notwithstanding the provisions ofthis subsection, § 34-36.1-2.18 governs the distribution of insuranceproceeds if the condominium is terminated.
(i) The provisions of this section may be varied or waived inthe case of a condominium all of whose units are restricted to nonresidentialuse.
§ 34-36.1-3.13 Insurance. – (a) Commencing not later than the time of the first conveyance of a unit to aperson other than a declarant, the association shall maintain, to the extentreasonably available:
(1) Property insurance on the common elements insuringagainst all risks of direct physical loss commonly insured against or, in thecase of a conversion building, against fire and extended coverage perils. Thetotal amount of insurance after application of any deductibles shall be notless than eighty percent (80%) of the actual cash value of the insured propertyat the time the insurance is purchased and at each renewal date, exclusive ofland, excavations, foundations and other items normally excluded from propertypolicies; and
(2) Liability insurance, including medical paymentsinsurance, in an amount determined by the executive board but not less than anyamount specified in the declaration, covering all occurrences commonly insuredagainst for death, bodily injury, and property damage arising out of or inconnection with the use, ownership, or maintenance of the common elements andany property owned or leased by the association.
(b) In the case of a building containing units havinghorizontal boundaries described in the declaration, the insurance maintainedunder subdivision (a)(1), to the extent reasonably available, shall include theunits, but need not include improvements and betterments installed by unitowners.
(c) If the insurance described in subsections (a) and (b) isnot reasonably available, the association promptly shall cause notice of thatfact to be hand delivered or sent prepaid by United States mail to all unitowners. The declaration may require the association to carry any otherinsurance, and the association in any event may carry any other insurance itdeems appropriate to protect the association or the unit owners.
(d) Insurance policies carried pursuant to subsection (a)must provide that:
(1) Each unit owner is an insured person under the policywith respect to liability arising out of the owner's interest in the commonelements or membership in the association;
(2) The insurer waives its right to subrogation under thepolicy against any unit owner or member of the owner's household;
(3) No act or omission by any unit owner, unless actingwithin the scope of his or her authority on behalf of the association, willvoid the policy or be a condition to recovery under the policy; and
(4) If, at the time of a loss under the policy, there isother insurance in the name of a unit owner covering the same risk covered bythe policy, the association's policy provides primary insurance.
(e) Any loss covered by the property policy under subdivision(a)(1) and subsection (b) must be adjusted with the association, but theinsurance proceeds for that loss are payable to any insurance trusteedesignated for that purpose, or otherwise to the association, and not to anymortgagee or beneficiary under a deed of trust. The insurance trustee or theassociation shall hold any insurance proceeds in trust for unit owners and lienholders as their interests may appear. Subject to the provisions of subsection(h), the proceeds must be disbursed first for the repair or restoration of thedamaged property, and unit owners and lien holders are not entitled to receivepayment of any portion of the proceeds unless there is a surplus of proceedsafter the property has been completed, repaired or restored, or the condominiumis terminated.
(f) An insurance policy issued to the association does notprevent a unit owner from obtaining insurance for his or her own benefit.
(g) An insurer that has issued an insurance policy under thissection shall issue certificates or memoranda of insurance to the associationand, upon written request, to any unit owner, mortgagee, or beneficiary under adeed of trust. The insurer issuing the policy may not cancel or refuse to renewit until thirty (30) days after notice of the proposed cancellation ornonrenewal has been mailed to the association, each unit owner and eachmortgagee or beneficiary under a deed of trust to whom a certificate ormemorandum of insurance has been issued at their respective last knownaddresses.
(h) Any portion of the condominium for which insurance isrequired under this section which is damaged or destroyed shall be repaired orreplaced promptly by the association unless (1) the condominium is terminated,(2) repair or replacement would be illegal under any state or local health orsafety statute or ordinance, or (3) eighty percent (80%) of the unit owners,including every owner of a unit or assigned limited common element which willnot be rebuilt, vote not to rebuild unless insurance proceeds are adequate torebuild. The cost of repair or replacement in excess of insurance proceeds andreserves is a common expense. If the entire condominium is not repaired orreplaced, (1) the insurance proceeds attributable to the damaged commonelements must be used to restore the damaged area to a condition compatiblewith the remainder of the condominium, (2) the insurance proceeds attributableto units and limited common elements which are not rebuilt must be distributedto the owners of those units and the owners of the units to which those limitedcommon elements were allocated, or to lienholders, as their interests mayappear, and (3) the remainder of the proceeds must be distributed to all theunit owners or lienholders, as their interests may appear, in proportion to thecommon element interests of all the units. If the unit owners vote not torebuild any unit, that unit's allocated interests are automatically reallocatedupon the vote as if the unit had been condemned under § 34-36.1-1.07(a)and the association promptly shall prepare, execute, and record an amendment tothe declaration reflecting the reallocations. Notwithstanding the provisions ofthis subsection, § 34-36.1-2.18 governs the distribution of insuranceproceeds if the condominium is terminated.
(i) The provisions of this section may be varied or waived inthe case of a condominium all of whose units are restricted to nonresidentialuse.
§ 34-36.1-3.13 Insurance. – (a) Commencing not later than the time of the first conveyance of a unit to aperson other than a declarant, the association shall maintain, to the extentreasonably available:
(1) Property insurance on the common elements insuringagainst all risks of direct physical loss commonly insured against or, in thecase of a conversion building, against fire and extended coverage perils. Thetotal amount of insurance after application of any deductibles shall be notless than eighty percent (80%) of the actual cash value of the insured propertyat the time the insurance is purchased and at each renewal date, exclusive ofland, excavations, foundations and other items normally excluded from propertypolicies; and
(2) Liability insurance, including medical paymentsinsurance, in an amount determined by the executive board but not less than anyamount specified in the declaration, covering all occurrences commonly insuredagainst for death, bodily injury, and property damage arising out of or inconnection with the use, ownership, or maintenance of the common elements andany property owned or leased by the association.
(b) In the case of a building containing units havinghorizontal boundaries described in the declaration, the insurance maintainedunder subdivision (a)(1), to the extent reasonably available, shall include theunits, but need not include improvements and betterments installed by unitowners.
(c) If the insurance described in subsections (a) and (b) isnot reasonably available, the association promptly shall cause notice of thatfact to be hand delivered or sent prepaid by United States mail to all unitowners. The declaration may require the association to carry any otherinsurance, and the association in any event may carry any other insurance itdeems appropriate to protect the association or the unit owners.
(d) Insurance policies carried pursuant to subsection (a)must provide that:
(1) Each unit owner is an insured person under the policywith respect to liability arising out of the owner's interest in the commonelements or membership in the association;
(2) The insurer waives its right to subrogation under thepolicy against any unit owner or member of the owner's household;
(3) No act or omission by any unit owner, unless actingwithin the scope of his or her authority on behalf of the association, willvoid the policy or be a condition to recovery under the policy; and
(4) If, at the time of a loss under the policy, there isother insurance in the name of a unit owner covering the same risk covered bythe policy, the association's policy provides primary insurance.
(e) Any loss covered by the property policy under subdivision(a)(1) and subsection (b) must be adjusted with the association, but theinsurance proceeds for that loss are payable to any insurance trusteedesignated for that purpose, or otherwise to the association, and not to anymortgagee or beneficiary under a deed of trust. The insurance trustee or theassociation shall hold any insurance proceeds in trust for unit owners and lienholders as their interests may appear. Subject to the provisions of subsection(h), the proceeds must be disbursed first for the repair or restoration of thedamaged property, and unit owners and lien holders are not entitled to receivepayment of any portion of the proceeds unless there is a surplus of proceedsafter the property has been completed, repaired or restored, or the condominiumis terminated.
(f) An insurance policy issued to the association does notprevent a unit owner from obtaining insurance for his or her own benefit.
(g) An insurer that has issued an insurance policy under thissection shall issue certificates or memoranda of insurance to the associationand, upon written request, to any unit owner, mortgagee, or beneficiary under adeed of trust. The insurer issuing the policy may not cancel or refuse to renewit until thirty (30) days after notice of the proposed cancellation ornonrenewal has been mailed to the association, each unit owner and eachmortgagee or beneficiary under a deed of trust to whom a certificate ormemorandum of insurance has been issued at their respective last knownaddresses.
(h) Any portion of the condominium for which insurance isrequired under this section which is damaged or destroyed shall be repaired orreplaced promptly by the association unless (1) the condominium is terminated,(2) repair or replacement would be illegal under any state or local health orsafety statute or ordinance, or (3) eighty percent (80%) of the unit owners,including every owner of a unit or assigned limited common element which willnot be rebuilt, vote not to rebuild unless insurance proceeds are adequate torebuild. The cost of repair or replacement in excess of insurance proceeds andreserves is a common expense. If the entire condominium is not repaired orreplaced, (1) the insurance proceeds attributable to the damaged commonelements must be used to restore the damaged area to a condition compatiblewith the remainder of the condominium, (2) the insurance proceeds attributableto units and limited common elements which are not rebuilt must be distributedto the owners of those units and the owners of the units to which those limitedcommon elements were allocated, or to lienholders, as their interests mayappear, and (3) the remainder of the proceeds must be distributed to all theunit owners or lienholders, as their interests may appear, in proportion to thecommon element interests of all the units. If the unit owners vote not torebuild any unit, that unit's allocated interests are automatically reallocatedupon the vote as if the unit had been condemned under § 34-36.1-1.07(a)and the association promptly shall prepare, execute, and record an amendment tothe declaration reflecting the reallocations. Notwithstanding the provisions ofthis subsection, § 34-36.1-2.18 governs the distribution of insuranceproceeds if the condominium is terminated.
(i) The provisions of this section may be varied or waived inthe case of a condominium all of whose units are restricted to nonresidentialuse.
