Insurance; reconstruction of building
Sec. 10. (a) In case of fire or any other casualty or disaster, other
than complete destruction of all buildings containing the
condominium units:
(1) the improvements shall be reconstructed; and
(2) the insurance proceeds shall be applied to reconstruct the
improvements.
(b) In the event of complete destruction of all of the buildings
containing condominium units:
(1) the buildings shall not be reconstructed, except as provided
in subdivision (2), and the insurance proceeds, if any, shall be
divided among the co-owners:
(A) in the percentage by which each owns an undivided
interest in the common areas and facilities; or
(B) proportionately according to the fair market value of
each condominium unit immediately before the casualty as
compared with the fair market value of all other
condominium units;
as specified in the bylaws of the condominium; and
(2) the property shall be considered as to be removed from the
condominium under section 16 of this chapter, unless by a vote
of two-thirds (2/3) of all of the co-owners a decision is made to
rebuild the building.
(c) If a decision is made under subsection (b)(2) to rebuild the
building, the insurance proceeds shall be applied, and any excess of
construction costs over insurance proceeds shall be contributed as
provided in this section in the event of less than total destruction of
the buildings.
(d) A determination of total destruction of the buildings
containing condominium units shall be made by a vote of two-thirds
(2/3) of all co-owners at a special meeting of the association of
co-owners called for that purpose.
As added by P.L.2-2002, SEC.10.
Last modified: May 24, 2006