Texas Property Code - Section 81.206. Disposition Of Insurance Proceeds
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Texas Laws > Property Code > Texas Property Code - Section 81.206. Disposition Of Insurance Proceeds
Section: 81.111 81.112 81.201 81.202 81.203 81.204 81.205 81.206 81.207 81.208 81.209 81.210 82.001 82.002 82.003
§ 81.206. DISPOSITION OF INSURANCE PROCEEDS. (a) Except
as provided by Subsection (b), if a building in a condominium regime
is damaged by a casualty against which it is insured, the proceeds
of the insurance policy shall be used to reconstruct the building.
The council of owners or the bylaws of the condominium regime govern
the conduct of the reconstruction.
(b) If more than two-thirds of a building in a condominium
regime requires reconstruction because of a casualty against which
it is insured, the council of owners may elect not to reconstruct
the building. Unless the council of owners unanimously agrees
otherwise, the insurance proceeds shall be paid to the individual
apartment owners or their mortgagees, as their interest may appear,
in proportion to the interest of an apartment owner in the
condominium regime as established by the declaration.
Acts 1983, 68th Leg., p. 3622, ch. 576, § 1, eff. Jan. 1, 1984.
Last modified: August 11, 2007