Uniform Planned Community Act — Insurance

Section 5312.0 - Title 68 - REAL AND PERSONAL PROPERTY 68c5312s § 5312.  Insurance. (a)  Insurance to be carried by association.-- Commencing not later than the time of the first conveyance of a unit to a person other than a declarant, the association shall maintain, to the extent reasonably available, all of the following: (1)  Property insurance on the common facilities and controlled facilities to the extent the controlled facilities can be insured separately from the unit and, if insurance for the unit is not provided by the association under subsection (b) or the declaration, insuring against all common risks of direct physical loss. The total amount of insurance after application of any deductibles shall be not less than 80% of the actual cash value of the insured property, exclusive of land, excavations, foundations and other items normally excluded from property policies. (2)  Comprehensive general liability insurance, including medical payments insurance, in an amount determined by the executive board but not less than any amount specified in the declaration covering all occurrences commonly insured against for death, bodily injury and property damage, arising out of or in connection with the use, ownership or maintenance of the common elements. (3)  Any property or comprehensive general liability insurance carried by the association may contain a deductible provision. (b)  Units having horizontal boundaries.-- In the case of a building containing units having horizontal boundaries described in the declaration, that insurance described in subsection (a)(1), to the extent reasonably available, shall include the units but need not include improvements and betterments installed by unit owners. (c)  Other insurance carried by association.-- If the insurance described in subsections (a) and (b) is not maintained, the association promptly shall cause notice of that fact to be hand delivered or sent prepaid by United States mail to all unit owners. The declaration may require the association to carry any other insurance. The association may carry any other insurance in such reasonable amounts and with such reasonable deductibles as the executive board may deem appropriate to protect the association or the unit owners. (d)  Policy terms.-- Insurance policies carried under subsections (a) and (b) shall provide all of the following: (1)  Each unit owner is an insured person under the policy with respect to liability arising out of his membership in the association. (2)  The insurer waives its right to subrogation under the policy against any unit owner or member of the owner's household. (3)  No act or omission by any unit owner, unless acting within the scope of his authority on behalf of the association, will void the policy or be a condition to recovery under the policy. (4)  If at the time of a loss under the policy there is other insurance in the name of a unit owner covering the same risk covered by the policy, the association's policy is primary insurance not contributing with the other insurance. (e)  Proceeds from property insurance.-- Any loss covered by the property policy under subsections (a)(1) and (b) …

Showing excerpt. Read full text on official source →