(1) The board of directors of a homeowners association shall obtain and maintain:
(a) Insurance for all insurable improvements in the common property against loss or damage by fire or other hazards, including extended coverage, vandalism and malicious mischief. The insurance shall cover the full replacement costs of any repair or reconstruction in the event of damage or destruction from any such hazard if the insurance is available at reasonable cost; and
(b) A public liability policy covering all common property and all damage or injury caused by the negligence of the association.
(2) Premiums for insurance obtained under this section shall be a common expense of the association.
(3) A policy may contain a deductible in the amount specified in the declaration or bylaws. The deductible amount shall be added to the face amount of the policy in determining whether the insurance equals at least the full replacement cost.
(4) Notwithstanding a provision in the declaration or bylaws that imposes a maximum deductible amount in an association insurance policy, if the board of directors determines that it is in the best interest of the association and owners as provided in subsection (5) of this section, the board may adopt a resolution authorizing the association to obtain and maintain an insurance policy with a deductible amount exceeding the specified maximum, but not in excess of the greater of:
(a) The maximum deductible acceptable to the Federal National Mortgage Association; or
(5) In making the determination under subsection (4) of this section, the board of directors shall consider such factors as the availability and cost of insurance and the loss experience of the association.
(6) Not later than 10 days after adoption of a resolution under subsection (4) of this section, the board of directors shall ensure that a copy of the resolution and a notice described in ORS 94.676 are:
(a) Delivered to each owner; or
(b) Mailed to the mailing address of each owner or to the mailing address designated in writing by the owner. [1981 c.782 §51; 2007 c.409 §14]Section: Previous 94.660 94.661 94.662 94.665 94.667 94.670 94.673 94.675 94.676 94.677 94.680 94.685 94.690 94.695 94.700 Next
Last modified: August 7, 2008